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What's behind the lower gas prices in Michigan?

Gas at less than $3 a gallon in Grand Rapids.
User: Steve Carmody
Michigan Radio


Michigan drivers who feared they'd seen the last of gas prices under $3 a gallon are happily discovering they were wrong.

Gasbuddy.com reports the average pump price in Michigan is $3.08 a gallon – but there are some stations where gas is less than $3 a gallon.

In West Michigan, Greenville boasts the cheapest gas in the entire country; several stations in the Montcalm County town are offering it at $2.55 a gallon.

Patrick DeHaan, senior petroleum analyst at gasbuddy.com, says Michigan's gas price now stands about $.10 below the national average. 

DeHaan says the lower gas price has to do with what's happening around the world. Two weeks ago, Saudi Arabia – the world's largest oil producer – says it's going to cut crude oil prices by October; oil prices drop on that concern. Last week, there were aggressive price cuts by Iran and Iraq. 

Another contributing factor of the price dip, according to DeHaan, is increased crude oil output in the U.S. 

DeHaan says motorists should expect to see some price adjustments, but by and large, DeHaan believes prices should remain relatively low through the early Christmas season.

* Listen to our conversation with Patrick DeHaan above.

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