The State of Michigan had the second highest gas prices in the United States last week, according to AAA. Experts and citizens agree that the spike in prices is affecting the local economy badly.

The average price of a gallon of gas here reached $4.24 last week; one cent short of the State’s all-time record high that was set in July 2008.

In South Carolina, a gallon of gas was a full dollar cheaper than Michigan over the past week. Only Hawaii had more expensive gas than Michigan throughout the entire country.

The sudden rise in prices was caused by technical problems in two gas refineries in the Midwest: an Exxon refinery in Illinois and a BP refinery in Indiana. 

While Michigan witnessed the highest increase in gas prices, people in Wisconsin, Illinois, Indiana and Ohio were paying over $4 for a gallon of gas as well, even though the national average was $3.63.

Several people at the pump shared the same sentiments with The Arab American News about gas prices, saying they were “too high.”

“It’s not worth all that,” said Walter Sledz, 86, of Michigan’s expensive gas. He joked that he would sell his car and remain at home if gas prices remain that high.

Many gas station employees in Dearborn said that gas sales are down.

“Sales are down almost 50 percent,” said one Sunoco employee. “Not only gas sales, but when people are not filling gas, they don’t come into the station to buy candy and other things.”

He added that even those who fill gas are less likely to buy other items from the station, because they are spending their money at the pump. 

Ali Jawad, co-owner of the Armada Oil and Gas Company, said that high gas prices are weakening Michigan’s economy, which is still in “recovery-mode.”

“Gas prices go up; the consumers don’t get out as much; they don’t buy stuff from  stores and gas stations, so all small businesses get hurt,” he explained.

Jawad said that Michigan’s elected officials are not addressing the issue, because it is not an election year. He also questioned the impact of the failure of the refineries, adding that large gas companies are benefiting from the price spike.

“Gas companies claim that the refineries are down,” he said. “They use that as an excuse to raise the prices.”

On Wednesday, June 12, gas prices dropped to about $4.11 per gallon.

Jawad said that he expects the prices to get closer to the national average next week, as the refineries get back to normal production.