GRAND RAPIDS, Michigan — As summer travel plans begin, many Michiganders are looking for ways to save money at the gas pump. Gas prices in Michigan can fluctuate significantly, often resembling a rollercoaster ride.
To understand the volatility, we spoke with Head of Petroleum Analysis for GasBuddy Patrick De Haan. "Michigan, along with Indiana and Ohio, has some of the most volatile gas prices in the country. The average daily change is a couple of cents a gallon," he said, highlighting the stark contrast with places like Chicago, where prices remain stable for longer periods.
De Haan explained that this fluctuation is due to a phenomenon called price cycling. “Gas stations are constantly trying to have the edge with the lowest price in the area, but they can only lower prices so much before selling at or below cost, which forces them to raise prices back up.”
Speedway gas stations in Michigan often lead the price cycle, and other stations typically follow their lead. “You can look at a station and know, essentially, if they've run out of room to go lower. If you start to see stations that aren't really lowering prices, that usually indicates a price hike is probably going to happen in the next couple days," De Haan noted.
To help consumers pay the lowest price at the pump, De Haan offered a simple rule of thumb. "When you see prices haven't lowered in a day or two, buy now before they go back up," he advised. "Alternatively, if you notice gas prices climbing, wait seven to ten days if you can. Prices will typically start to go back down, and that’s the time to fill up."
As the summer season approaches, keep these tips in mind to make the most of your gas budget.
