Michigan motorists and small business owners were given a break for the third consecutive week as gas prices continued to drop statewide.
Regular unleaded gasoline fell 5.7 cents per gallon this week, dropping the average price to $1.55 per gallon according to AAA Michigan.
The drop in gas prices can be attributed to the recent release of crude oil from the Strategic Oil Reserve by the federal government, said MSU economics Professor Mordechai Kreinin.
The move was not only facilitated by the rising gas prices but by a greater demand for heating oil in the northeastern part of the United States.
Managers of local gas stations said they have kept their prices at or below the statewide average by pricing gasoline based on the wholesale value given to them.
“We are selling unleaded gasoline at $1.51 per gallon, which is sitting below the statewide average,” said Aric Fountain, manager of the Frandor Gas & Mart, 3000 E. Saginaw Highway in Lansing. “I am keeping it as low as possible without losing money on the sale price.”
Although prices have dropped recently, the average price statewide is still significantly higher than a year ago when prices were around $1.297 per gallon.
Local business owners watched the prices of gasoline rise over the summer, but most did not make major adjustments to counteract the price increase.
“Over the summer, with the lack of students on campus, our business slows considerably, so we did not really have to adjust the compensation of drivers during that time period,” said Jessica Showers, assistant manager of Jimmy John’s Gourmet Sandwich Shop, 4790 S. Hagadorn Road.
Despite the rising prices, most local businesses kept prices relatively stable and avoided putting a strain on the pocketbooks of students and other customers.
“We had to raise our prices this summer but it was a move that was not affected by the raise in gas prices,” Showers said.
With gas prices still high at the beginning of the fall semester, some local businesses looked at alternative ways to alleviate or help compensate for the wear and tear placed on the cars driven by delivery drivers.
“We tried to set up a relationship with a local gas station for our drivers and send them there exclusively to possibly lower the price per gallon for our drivers, but we were unable to work out a deal,” said Jay Bender, manager of Papiano’s Pizza, 1219 E. Grand River Ave.
“Our drivers have been very happy with the falling of prices as it helps increase the amount of money they are able to keep in their own pockets instead of spending it constantly refilling their tanks,” Bender said.
