OTTAWA COUNTY, Mich. — Gas prices are dropping from where they were in early March, but still, what you pay could vary greatly depending on where you live.
In parts of West Michigan, a gallon of gas is selling for around $3.60. But many times, even just a short distance away, prices jump by as much as 30 cents.
Patrick DeHaan, head of Petroleum Analysis at GasBuddy, said that when it comes to different prices even in the same area, it's all about competition.
"If there's two stations on a corner, one's going to be a penny lower, then the other goes a penny lower, then the other goes a penny lower, and so on," he said, "so it's just all about trying to attract people to their station."
DeHaan explained that the price of oil has been very volatile over the last week and a half, and some stations are selling at or below cost. He added that not every station wants to do that.
"Any station that's under about $3.70 a gallon is selling under cost," he said. "So if one competitor keeps under-cutting, the other one is going to have to match it, and that's why you're seeing only these low prices in some areas."
He said that these price wars will likely always happen because "people are very price-sensitive when it comes to gas. They want the lowest price, and that's why stations continue to compete."
DeHaan also said he's expecting another spike in prices.
"We could see it at any time that stations raise their price to maybe $3.99 and maybe $4.09 per gallon because the prices they're are paying have gone up considerably," he said.
DeHaan said that when stations are paying more for gas than they're selling it for, it's a good indicator of price hikes.
"Stations continue to lose money every day," he said, "and it's only so long that they can do that before it really starts to hurt their bottom line."
He said that if you can find a gallon of gas for under $3.65 right now, that's a great deal and we won't see that again for at least a couple of weeks.
"Just be ready," he said. "Prices could go up at any moment."
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