Gas hits $4 and a new state high

State average climbs to $3.80, but should fall if motorists drive less.

Jennifer Youssef / The Detroit News

The prediction that a gallon of regular gas in Michigan would hit $4 a gallon sometime this summer was proved wrong Friday.

Because $4 gas showed up, and it’s only spring.

Gas prices hit records Friday across the country and throughout the state, as well as right here in Metro Detroit where a Romulus station near Detroit Metropolitan Airport advertised regular gas at $4.09 a gallon.

Not far behind was a station in Madison Heights charging $3.99, according to detroitgasprices.com.

While most Metro Detroiters can find gasoline at least 20 cents cheaper, the average price for a gallon of unleaded regular continues to climb. The average Friday was $3.77 in Metro Detroit, $3.80 in Michigan and $3.67 nationwide. Just Monday, the local average was $3.65.

Southfield resident Andy Stern was stunned when he filled his gas tank for $80 three days ago. Stern, a 31-year-old car buff, drives a high-performance truck that gets 12 miles to the gallon and can be filled only with premium gasoline, which was at $3.89 a gallon when he was last at the pump.

"It’s terrible," he said. "It’s kicking my a–."

Motorists seeking even a modicum of relief are flocking to stores like Costco, which have among the lowest prices in town, and other cheap stations. The Roseville Costco sends one or two employees to the parking lot to direct traffic during peak fill-up times at its station, manager Lonnie Burrell said Friday.

"It’s crazy out there today," he said. "It’s like that every day."

If more stations hit $4, prices may actually start to come down because more motorists will cut back on their driving, cutting demand, said Jim Rink, spokesman for AAA Michigan. But he said the situation is too volatile to make any predictions about the direction of gas prices.

"If we continue like we have for the past four or five years — where gas has peaked in May — prices should start to fall," he said. "Will it happen? That remains to be seen."

But even if motorists drive less, the major problem isn’t going to go away, he said.

"Someone needs to step up and do something about a long-term energy policy to reduce our reliance on foreign oil."

Record-high oil prices are mostly to blame for the recent surge in gas prices. On Friday, a barrel of oil vaulted to a record of $126.25, before retreating slightly to settle at a record $125.96.

As painful as it was for Mark Griffin to see the high prices, he wasn’t shocked. He’s president of the Michigan Petroleum Association, which represents independent station owners.

After breaking down the cost of the gas, plus taxes, shipping, handling and credit card fees, he estimated it costs stations $3.97 a gallon. The few pennies owners make — if they make anything — pays for overhead, he said.

"Petroleum wholesalers are paying $3.18 when they buy it from Big Oil," he said, "and when you factor in all the other costs to get it (to a gas station), they have to charge $4 to break even."