By By ANDY HAMILTON / Niles Daily Star
NILES – Scott Tyler said rising gas prices are not driving customers to purchase smaller or more fuel-efficient vehicles from Tyler Automotive.
"We haven't seen any real general trend," Tyler said. "We continue to experience selling the same mix of vehicles that we usually do. There hasn't been any new emphasis from the public on small vehicles as a result of the gas prices."
Fuel prices in Michigan leaped nearly 14 cents per gallon in the past week, according to AAA Michigan's Daily Fuel Gauge Report at fuelgaugereport.com, which takes into account all of Michigan's approximately 2,800 service stations. The average cost per gallon of regular gasoline in Michigan on Thursday was $2.486, about 14 cents more than one year ago at this time.
Prices for regular unleaded in Niles on Thursday ranged from $2.42 to $2.50.
"Basically that's because the crude oil prices are going back up," said Nancy Cain, a spokesperson for AAA Michigan. "Right now the crude oil per barrel price is the highest since mid December."
Cain said another contributor to the rise in fuel prices could have been the plummeting U.S. stock market earlier in the week. And, she added oil refineries have begun shutting down for the change over from preparing winter blends to summer blends of gasoline.
"The summer blends are better for environment," Cain said. Plus, prices traditionally tend to go up this time of year, Cain said. And, she added the unusually late winter didn't help the gas prices in the Midwest.
"The Midwest part of the county did not have much of a winter until recently and demand for heating fuels now has gone up," Cain said. "Typically they tend to come up this time of year," and peak mid summer.
Cain also said if more oil refineries are damaged, such as in 2005 with hurricanes Katrina and Rita, fuel prices could rise.
"All the indications are gas prices are not likely to come down too soon, and they're likely to go up a little bit," Cain said. Despite the jump in prices, and the increased traveling in the summer months on the horizon, Jack Wieging of Tyler Automotive sales department said he talks with very few customers who ask about smaller, more fuel efficient vehicles. He also said there aren't too many people asking a whole lot about alternative fuels, like the ethanol blend E85.
Wieging said people are becoming more aware of alternative fuels but there is little interest, probably because there are not any service stations in the immediate area offering E85 – 85 percent ethanol and 15 percent petroleum.
There are 41 service stations in Michigan offering E85, which burns cleaner but quicker, Wieging said. The nearest service station to Niles with E85 is on Brick Road in Granger, Ind.
Plus, Wieging said ethanol-based fuels, and namely E85, are not drastically cheaper than regular unleaded gasoline. That will change when more ethanol producing plants become operational, he added.
"From my standpoint … there's not a big enough price difference," he said.
Wieging also warned motorists against filling their vehicles with E85 unless they are absolutely sure their engines are compatible with the fuel. Lawmakers proposing alternative fuel legislation have said most vehicles on the road today can take E85.
Wieging said that's just not true.
"If you're not sure it will take E85, don't put it in your vehicle," he said.
Owners should be able to determine if their vehicles are E85 compatible by reading through the owner's manual or contacting the manufacturer.