Detroit: Cheapest gas in U.S.
January 22, 2007

Image: David Guralnick / The Detroit News

The nation's lowest gas prices can be found in Detroit, which is typically in the middle of the pack. In Detroit, the average price of regular unleaded gasoline was $1.897; it was $1.95 statewide Sunday, according to AAA Michigan, as reported in the Detroit News.

AAA Michigan reports statewide regular gas is $1.90 a gallon, midgrade $2.01, premium $2.09 and diesel $2.46.

Nationwide, retail gas prices for regular unleaded dropped nearly 14 cents over the past two weeks to $2.18 a gallon.  An unseasonably warm winter combined with no supply interruptions has left crude oil prices hovering around $51 a barrel, a drop of more than $25 since August, according to AAA.

Industry experts said the prices should remain low for weeks, barring supply disruptions, but a rise is likely by summer.

Question is how long are consumers' memories? Will consumers believe cheap gas will last and shift their buying habits back toward vehicles with lower fuel economy, like SUVS? And will automakers, especially those in Detroit, believe cheap gas is here to stay and slack off in boosting fuel economy and future powertrain technologies? Let's hope not.

GM's Rick Wagoner insisted in a speech to the Automotive News World Congress here that Washington not to slack off in developing alternative energy sources.

“With the price of oil at its lowest level in 19 months, we run the risk of reverting back to our traditional energy policy," Wagoner said, referring to U.S. dependence on cheap foreign oil. "I hope oil prices stay low, but I also hope that our nation stays committed to energy security through energy diversity."

—Michelle Krebs

Posted by Michelle Krebs at 6:56 AM under News | Comments (0) | digg this | Seed Newsvine