Why Is Gas So Much Cheaper Just Across The State Line?

We are all still reeling over the price of gas. The price per gallon has dropped a bit but still not enough. The cheapest I can find around Grand Rapids is $4.49 to $4.59 with some locations a little higher.

But in Indiana some spots have it down to $3.66 a gallon. That is a big deal! But, that is a long drive just to save 80 cents to a dollar. In fact that would be totally silly to do.

The key question here is why such a difference in price?

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Is it distribution? Closer refineries?

None of the above. The governor suspended the Indiana gas tax. And, Indiana has done it before. They always seem to have a balanced budget with large reserves, so they are able to draw from that to cover the tax income loss.

Not so here in Michigan. Our tax is high when you combine it with the federal tax. Currently our gas tax is 52.4 cents, and couple that with the federal tax, there is 70.8 cents tax on gas here in Michigan. Yikes!

WHY IS GAS SO HIGH IN THE FIRST PLACE?

The wars in Iran and Ukraine obviously affect world oil prices, thus affect gas prices. The Middle East and OPEC are always hot spots to control oil, but the interesting thing here is most people don't know that we, the U.S., only import 8% or our oil from the middle east. That's it.

Bet you also don't know who is the biggest oil producing nation in the world?

The United States! We are considered to be the top oil producing nation. So, that begs the question why the continued high prices?

One can only hope that one day the we will get to look behind the curtain to see what is really going on.