Inflation, rising energy prices create summer storm
Line 5 remains reliable, stable source of energy
May 25, 2022
It’s not only for home goods, services and groceries, but now it’s also for energy.
Little did Michigan consumers know when the average price for a gallon of regular gasoline reached $4.17 in March, it would be a bargain by comparison to the pain their wallets are experiencing at the pumps today.
The average price for a gallon of regular gasoline in Michigan topped $4.57, with diesel at $5.27, according to AAA records for the week of May 15.
Compared to some other states where prices have topped $5 and $6 per gallon, Michigan is faring well; however, the rising cost of fuel, expected to continue throughout the summer, is affecting far more than routine travel for work or school.
It impacts the transport of everything—from food delivered to supermarkets and restaurants to the supplies that keep hospitals and medical offices stocked.
Compounding the effects of soaring gasoline prices is inflation at a 40-year high. While the inflation rate decreased from 8.5% in March to 8.3% in April, consumers continue to feel the pinch.
Among the many challenges inflation poses, the price at the pump is the top concern for Americans, followed by the ability to pay bills, according to a recent survey by Fidelity’s eMoney Advisor.
“With energy costs high for American consumers, abundant and diverse U.S. energy supplies are necessary to meet demand along with economic growth,” said Dean Foreman, chief economist for the American Petroleum Institute (API).
“A robust and technologically advanced U.S. infrastructure system, including pipelines, is vital to ensuring American producers can meet rising demand at home and for our allies abroad.”
Reliable sources of energy are important
To that end, Enbridge’s Line 5 liquids pipeline in the Straits of Mackinac continues to be a reliable and stable source of energy and fuel for the region. For more than 68 years, refineries in Michigan and four other states and Canada have relied on Line 5 to supply the light crude oil essential to manufacturing the diesel, gasoline and jet fuel that keeps the world moving.
“Energy infrastructure like Line 5 continues to provide much-needed propane and other fuels to Americans across the country,” said Foreman, “along with millions of private investment and tax dollars and thousands of jobs. A clear and consistent permitting process and policies that encourage the development of energy infrastructure are critical to providing reliable energy now and into the future.”
Tunnel project will keep energy flowing, protecting the Great Lakes
In addition to implementing measures that keep Line 5 operating safely today, Enbridge remains focused on how best to serve the region in the future ─ constructing the Great Lakes Tunnel. The Tunnel will encase in concrete a replacement section of Line 5 deep below the lakebed in the Straits of Mackinac.
The project will eliminate the chance of an anchor strike and reduce the chance of a release to virtually zero. The Tunnel can also accommodate other utilities, such as fiber optic cables for internet connectivity and expanded 911 service while also allowing enough space for Enbridge to maintain the Tunnel and its pipeline.
According to Enbridge, surveys show nearly 70% of Michiganders support construction of the Great Lakes Tunnel, reflecting they recognize it as a dependable source of fuel and energy.
In today’s world with all types of costs spiking, consumers need and appreciate things on which they can rely.