Saturday, August 15, 2015

Gas price spike prompts outrage and analysis

The rise in gas prices I reported in Prices spike in time for Dream Cruise continues to spark outrage and analysis.  Both WXYZ and WOOD-TV have examined the issue, but I'll let WXYZ tell the story first in Digging for answers on gas price spike.

We're digging for answers on what caused the big spike in gas prices.
That's a good explanation of how the closure of the Whiting refinery is causing BP to buy gas on the spot market, driving up wholesale costs for everyone.  As for Schuette on Duty, I've seen him warn retailiers like this before, first in 2012 and again in 2013.  Both times, I've pointed out that he was grandstanding.  He's not alone in that regard.  Follow over the jump for another Republican politician who is taking advantage of the situation to get attention.

Earlier in the day, WXYZ let members of its audience vent in RANT VAN: Gas prices skyrocket.

A few days ago, the Detroit average was $2.86.  According to Gas Buddy, it's now $3.03, the highest price of the year.  Given that Oil-Price.Net lists yesterday's close for as $42.50, and the close the day before was $42.25, a dollar lower than it had been the last time I checked, that does come off as outrageous.  That leads me to the other politician grandstanding over gas prices, State Senator John Roos.  Here he is on WXYZ in INTERVIEW: What is going on with the spike in gas prices?

He got a starring role in WOOD-TV's Sen. Proos pushing for change to fight gas hikes.

Sen. John Proos says if our supply is so fragile that a breakdown at one refinery can causes prices to spike so dramatically there needs to be an investigation.
As much as I hate to admit it, he's probably right that our supply system shouldn't be so fragile.  Then again, that's a problem with efficiency; it works against robustness and resiliency.  I don't know if he'll figure that out.  Stay tuned.

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