Michigan Gas Prices Soar Past The National Average

MICHIGAN — Lower gas prices don't seem to be on the horizon for drivers in Michigan any time soon. Michigan gas prices recently hit a new high for the year of $3.31 a gallon before dropping by one cent Monday.

Drivers in the state are now paying an average of $3.30 per gallon for regular unleaded, which is 10 cents more than a week ago. This price is 11 cents more than this time last month and $1.10 more than this time last year, AAA announced Monday.

AAA reported that drivers are currently paying an average of $49 for a full 15-gallon tank of gasoline—an increase of about $10 from when prices were their highest last January.

In its latest weekly report, the Energy Information Administration (EIA) reported that gas demand increased from 9.33 million b/d to 9.78 million b/d. Not only is the demand reading very robust for peak driving season, but 2% higher than the same time period in 2019. Additionally, total domestic gas stocks declined by 5.3 million bbl to 228.9 million bbl. These trends, combined with high crude prices, have helped to increase pump prices.

At the close of Thursday’s formal trading session, WTI increased by 94 cents to settle at $69.09. Prices increased due to tension in the Middle East, which heightened after Israeli military jets struck alleged rocket launch sites in Lebanon. Thursday’s price increase comes after crude prices declined for three days due to market concerns about the impact of rising global COVID-19 infection rates on crude demand.

"According to data from the EIA, last week Midwest gasoline inventories dropped to their lowest point in over a month,” said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. “Tightening supplies, alongside increased demand in the region, have Michigan drivers seeing some of the highest pump prices so far this year.”

Compared to last week, Metro Detroit’s average daily gas price increased. Metro Detroit’s current average is $3.36 per gallon, about 6 cents more than last week’s average and $1.12 more than this same time last year.