Gas war in northern Michigan sees prices drop below $0.50



KALAMAZOO, Mich. (NEWSCHANNEL 3)- A gas war in Northern Michigan is now over.

At one point over the weekend, gas was selling for 47 cents a gallon in Houghton Lake.

So many people lined up to score a deal, police were called in for traffic control.

That rush is over and prices are back up to $1.44 a gallon.

You can see our original story below, along with a link to our Gas Tracker.

KALAMAZOO, Mich. (NEWSCHANNEL 3) - Did you ever think you'd see gas below $1 per gallon ever again?

It happened this past weekend, and right here in Michigan.

On Monday, we talked with a gas analyst who says while it's unlikely we'll see those prices in West Michigan, it's certainly possible the current prices could drop even lower.

There's a gas price war going on in Houghton Lake.

A picture captured Sunday shows a station advertising gas at 78 cents a gallon.

And the war between stations quickly escalated, as a short time later, a new price surfaced.

"(It was) very impressive, such long lines that police were called to maintain some order from motorists who I'm sure were super excited to fill up gas for 47 cents a gallon," said Patrick DeHaan, fuel analyst with Gas Buddy.

"That would help out drastically around the Kalamazoo area," said driver Trenton Napier. "I know there's been talk about prices going down to that price--that would be excellent if we could have that."

According to, the average across the state is about $1.70. Those numbers are a little higher in Grand Rapids, and a bit lower in Kalamazoo.

But 47 cents a gallon in West Michigan?

DeHaan says don't hold your breath.

"Very, very unlikely, but as we've seen gas wars can happen just about anywhere," he said. "Will prices continue to go down? Well, at least for the next few days."

DeHaan says Michigan, Ohio and Indiana saw some of the biggest drops in the country over the last week.

He tells us right now there is a surplus of oil across the globe driving prices lower. On top of that, U.S. and European Union sanctions on Iran were lifted on Saturday.

"Iran adding more oil to a global market that is already over-supplied is likely to push oil prices down further. In fact, looking at some of the benchmarks, some of the oil benchmarks that are trading today, electronically, they are moving down significantly," DeHaan said.

DeHaan says because Iran is now back on the market, that will likely keep prices subdued for some time.

To check gas prices near you, see our Gas Tracker.

Our own Andy Dominianni will be live in Lansing Tuesday night to cover the Governor's response to the crisis as part of his State of the State Address.