Over the past year, restrictions limiting the spread of coronavirus limited business and recreational travel suppressing oil demand. But now, as the weather improves and vaccines are more widely available, gas prices are expected to climb across Michigan.
“Of course, a lot of us like to pour over the fact that a year ago we were spending a lot less on gasoline.”
Patrick DeHaan is head of petroleum analysis with GasBuddy.com.
“And so, we long for the cheap gasoline, but we also long for the return to normal and you can’t have your cake and eat it, too,” said DeHaan.
DeHaan says there’s a pandemic economic recovery driving prices higher.
“And now that those restrictions are easing Michiganders, Grand Rapidians, can go places," DeHaan said. "And that’s rinse and repeating across the country. Coast to Coast Americans are getting out. They’re going places.”
Warming weather and COVID-19 vaccines providing consumer confidence.
“GasBuddy data points to the fact that demand is at pre-pandemic levels. But the problem is supply is not. Supply last year took a huge hit with the freefall in oil price and demand and oil companies haven’t really responded to the uptick in price just yet.”
In recent weeks, an uptick in European COVID cases is undercutting oil prices. Short-term, that’s lowering prices across west Michigan by about 10-cents per gallon from a week ago.
DeHaan says inevitably prices will climb as Labor Day approaches.