(02/20/19) - Anyone who has filled up with gasoline in the last week or so undoubtedly has noticed a big jump in the price for a gallon of gas.
Patrick DeHaan of Gas Buddy said the lower prices earlier this month came as refineries worked to clear out their remaining inventory of winter blend gasoline ahead of the annual switch to summer blend.
"Think of it this, it was kind of a clearance sale on the gasoline that can't be sold in the months ahead and refineries have to do something with it," he said. "So they start offering bigger and bigger discounts, and as we start getting closer to the start of the transition, essentially refineries are trying to get rid of it because they can't hold on it."
The discounts disappear as those winter blend gasoline stocks fall. As a result, gas prices are going back in Mid-Michigan.
DeHaan said the prices at the pump now may go down slightly, but overall don't expect to see prices under $2. As we head toward spring and the summer months, it could be over $3.
"I know nobody likes to hear that," DeHaan said. "I don't like to see it myself, but because of these factors with maintenance season and the transition to summer gasoline and typically higher oil prices it usually happens this time of year."
He said the increases likely are not done for now, as prices continue climbing through Memorial Day. Gas prices typically peak around the start of summer before retreating again.
"Usually prices back off a little in the month of June, but we may make another run at $3 a gallon like we did last year," DeHaan said. "But I still think that if you look at the course of the year, we'll spend a lot more time under $3 a gallon than we will over $3."
DeHaan advises drivers to wait a few days after a major price increase to fill up, because prices will start inching back down.