Fuel Report: 2012 Gas Prices Expected to Peak on Memorial Day in Metro Detroit

While gas prices were lower this week in Berkley and Huntington Woods than last, motorists should start preparing for higher prices throughout the year and particularly over the Memorial Day holiday, one forecasting agency warns.

According to the AAA, the average price for a gallon of regular gas in Metro Detroit was $3.54 on Tuesday morning, down from $3.56 a week ago and up from $3.15 one year ago.

Price forecasting agency and data provider GasBuddy.com predicts that 2012 gas prices will peak in May, with a national median price of $3.95 per gallon. The average price for a gallon of regular unleaded gas is expected to hit a new high of $4.15 to $4.50 on Memorial Day in Metro Detroit, according to gasbuddy.com.

“While the 2012 outlook isn’t what I’d call rosy, we can look to Europe at their $6-$9/gallon gasoline and be happy that we’re still not paying as much as some countries,” wrote Patrick DeHaan, a senior petroleum analyst for gasbuddy.com.

He cited Iran's threat to close the Strait of Hormuz, a key shipping route in the Middle East, as a major factor in pricing.

“Motorists who drive a(n) SUV may want to consider calling their banking institution and obtain a credit limit increase so they can afford this summer’s fuel expenses,” DeHaan wrote in his 2012 report.

Here are some of Tuesday's prices for a gallon of regular gas at a few nearby stations, according to the AAA Fuel Gauge Report:

• (3372 Coolidge Hwy., Berkley): $3.57
• (26001 Woodward Ave., Royal Oak): $3.60
• (3427 12 Mile Road, Berkley): $3.57
• Speedway (24771 Coolidge Hwy., Oak Park): $3.45

Where have you seen the cheapest gas around town? Leave a comment!