SEARCH BLOG: GASOLINE
Michigan's overheated economy has created so much demand for gasoline that it appears refiners simply cannot keep up with the demand. Hence, gasoline prices in Michigan are among the highest in the nation.
This comes on the heels of announcements by automotive manufacturers that they will be increasing production by 25% and hiring thousands of new employees. Workers are moving into Michigan at a rate unprecedented anywhere else in U.S. history. Home prices are increasing at a rate of 5% per month.
Okay, maybe the law of supply and demand is not enforced in Michigan. That presumes a free market economy. In Michigan, there is a requirement for "summer blend" gasoline to combat pollution.
The long lines at the Michigan gasoline pumps have resulting in this startling comparison with Georgia that is on the brink of economic collapse. Demand is so weak in Georgia that gasoline stations have begun offering free glasses or coffee mugs with a fill-up to compete for the few customers available.
The Michigan Department of Agriculture (MDA) is charged with enforcing ozone protection measures in accordance with Michigan's Motor Fuel Quality Act. This environmentally friendly program, started in 1996, will be mostly transparent to consumers, who may notice a slight increase in fuel efficiency using the slower to evaporate gasoline. Gasoline stations in the eight - county Southeast Michigan area, however, must sell only the summer-formula gas and meet other state and federal requirements. Use of the reformulated gasoline will prevent the release into the atmosphere of an estimated 28 tons of smog-causing compounds per day. [ed. consumers may also note a slight increase in gasoline prices]When confronted with the fact that motor vehicles already have sophisticated electronic pollution control devices costing hundreds of dollars, plus very expensive catalytic converters, and that the industrial production conditions affecting the atmosphere in the 1990s have changed, a government spokesperson responded, "So what? Who's gonna complain?"
Just in case you were wondering why the heck the government thinks this situation is such a good idea... it doesn't... at least the part of the government tasked with thinking things through. This is nothing more than bureaucratic inertia costing the American consumers and businesses billions of dollars each year.