BEDFORD TWP., Mich (13abc Action News) - Drivers watch out because gas prices are on the way up. Especially in the state of Michigan where an increase in the state gas tax took effect at the first of the year.
But that gas tax is still not as high as the Ohio gas tax. So why are Michigan gas prices so much higher than Ohio prices? The 13abc I-Team has answers.
Several factors in the gas price are pretty much the same when it comes to Ohio and Michigan. They include refining and delivery. So those are not the main issues. It’s actually a whole different tax that puts the state up north, up on gas prices.
$2.49 was the price at the BP at Dean road and Lewis avenue Wednesday afternoon in Bedford Township. Plenty of people stopped for a quick fill up. That includes Brenda King who lives in Michigan but works in Ohio.
"It's because of convenience but I know that it's more expensive in Michigan so I try to stay in Ohio," said King.
According to gasbuddy.com the Ohio average is $2.31. The Michigan average is over $.20 more at $2.54. That's with the just over $.07 per gallon increase for 2017 in Michigan. That money going into transit and road repairs.
"I think it's kinda necessary for them to fix our roads which are in pretty bad shape. You always notice a big difference when you travel from Ohio to Michigan," said Michigan driver Kirk Shade.
That happens because even though Ohio gas tax is higher, Michigan drivers also get hit with a sales tax. Each Michigan fill up includes a 6% sales tax per gallon. According to MODT that money goes almost entirely to schools. When you add all taxes a Michigan stop at the pump is taxed higher.
The I-Team found drivers who were OK with a tax increase as long as they money is well spent.
"If people knew for sure that the money going into that, I think they're all for it but I'm not so sure everybody thinks that's where it's going," said Michigan driver Jim Stark.
"Especially with the amount of commercial traffic and stuff, the only way to fairly distribute the cost is through the gas tax," said Shade.
Usually you will be paying less, the further south you go. For example we found $2.49 at Dean and Lewis. But if you made the 5.7 mile trip just over the border to Secor and Glenn in Toledo we found the price over 30 cents cheaper.