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Experts blame gas prices on refinery problems { May 8 2007 } Original Source Link: (May no longer be active)
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Experts blame gas prices on refinery problems
May 8, 2007 - 8:43PM
GRAND RAPIDS (NEWSCHANNEL 3) - Up like a rocket, down like a feather - when it comes to gas prices they go up fast and come down slowly.
Less than a month ago we were shocked to pay $2.81 a gallon. Two weeks later they bumped up another fifteen cents to $2.94. And then, just prior to last weekend, prices shot up to $3.25 a gallon in most places.
"Its outrageous, we can hardly afford to keep gas in the van honestly, its difficult for a family," said one driver.
Drivers fear the worst with gas well over three dollars. Most fear that four dollars won’t be far behind.
Many drivers are now saying they don't know how much more of this pain at the pump they can take.
"This is the smallest car I've seen here all day. Darn right, best fuel efficiency," said Mark Engstrom. Engstrom is a car salesman, who uses a golf cart to get around the lot.
It needed a fill-up. "I think it was 17 bucks," said Engstrom. Seventeen bucks for a tank that fits under the seat.
While most consumers' study of gas prices includes what they see on the way to work, Associate Professor Paul Isely's research is a bit more extensive. He follows what's going on with refineries across the country.
The jump we've seen recently in Michigan has to do with shut downs and refinery problems.
"Several refineries are in Midwest normally, Midwest is at or below average for us, right now we are above the average," said Isely.
Isely says it looks like prices will start going down soon. And that talk of four dollar gas during the summer? "If hurricane Rita or Katrina, without some event like that, nothing in the cards to suggest gas at that price," said Isely.
In fact, he says that three plus dollar a gallon isn't necessarily the dream of oil companies. "If you want conspiracy theories, the oil companies have a lot of reason to get the price of oil down below three dollars. People will buy more, pressure from congress will go down," said Isely.
Of course if consumers don't see the drop there are alternative means of transportation.
If only it was legal to take those golf carts on the road.
Professor Isely says the weekly refinery report comes out Wednesday. He's expecting it'll indicate that prices are going to go down a bit in the coming week or so.
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