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Week 20 - TUE MAY 13 - $3.999
Reportedly, independent gas station owners are breaking even or even taking a loss at this price. According to the Michigan Petroleum Association, the wholesale price of gas in Michigan on Tuesday was $3.23. Add to this 18.4¢ for federal fuel tax, 19¢ for Michigan fuel tax, 20¢ for Michigan's 6% sales tax, 7¢ for credit card fees, 2¢ for transport of the fuel, and 11¢ for business overhead for a total of $4. In August 2003, the wholesale price was 97¢, which reduced the state sales tax portion to 7¢ per gallon, for an average station's cost of $1.57. If credit card fees average 7¢ per gallon, no wonder Meijer and Speedway offer a 5¢ per gallon discount for using their credit cards.
I would plan on gas going up another dime early next week to $4.099. This Sunday or Monday morning between 6 and 9 a.m. would be an excellent time to fill up for Memorial Day weekend.
I have no idea how much higher gas prices are going this spring and summer, but $4.259 wouldn't surprise me between now and Labor Day, even without a supply disruption. Just remember, it has been less than 3 years since we first hit $3 a gallon. That was on Tuesday, August 30, 2005 in response to Hurricane Katrina. In May 2005, I think gas was in the $2.30 range, a then all-time high. I think the day after Memorial Day 2005 it reached another new peak of $2.49. Until Hurricane Katrina, the summer 2005 peak was $2.799. After Katrina, the peak for 2005 was $3.399. The peak for 2006 was $3.199 on July 24 and August 3.
How have you adjusted your life for $4 a gallon gas?
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