Michigan Gas Prices Up Again This Week

DEARBORN, MI — The new year has brought new gas prices. Wallet warning: It's not pretty.

It costs $2.53 for a gallon of regular unleaded gasoline in Michigan, according to the latest AAA statistics. We're paying 30 cents more a gallon statewide than we were a month ago.

In Metro Detroit, a gallon of gas will run you $2.50. That's up 10 cents per gallon in the last week.

Why are gas prices skyrocketing? Reason number one: When the clock struck midnight on Jan. 1, 2017, a gas tax hike of 7.3 cents a gallon went into effect statewide. The gas tax jump was passed by Governor Rick Snyder in Nov. 2015 as part of a $1.2 billion dollar road funding package to repair Michigan's abysmal roads.

Reason number two behind surging fuel prices: In Nov. 2016, the Organization of the Petroleum Exporting Countries (OPEC) decided to cut production of oil by 1.2 million barrels a day for six months. OPEC will decide whether or not to extend the production cut - which would likely extend the gas price pain for consumers - at its next Ordinary Meeting on May 25, 2017 in Vienna, Austria.

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