DEARBORN, MI-- Gas prices in Michigan soared 42 cents, setting a new 2022-high. Michigan drivers are now paying an average of $3.97 per gallon for regular unleaded. This price is 60 cents more than this time last month and $1.25 more than this time last year.
Motorists are paying an average of $59 for a full 15-gallon tank of gasoline; an increase of about $8 from when prices were their highest last November.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 500,000 bbl to 246 million bbl. On the other hand, gasoline demand increased slightly from 8.66 million b/d to 8.74 million b/d. An increase in gas demand, alongside a reduction in total supply, is contributing to price increases, but increasing oil prices continue to play a leading role in pushing prices higher.
At the close of Wednesday’s formal trading session, WTI increased by $7.19 to settle at $110.60 – the highest settlement price since May 2011. Crude prices continue to surge as the conflict between Ukraine and Russia continues to bring uncertainty to the market. To help counter the impact of rising oil prices, the International Energy Agency (IEA) has coordinated a release of 60 million bbl of crude oil from its 31 member countries’ strategic reserves, including the U.S., Germany, Canada, South Korea, and Mexico. The announcement of the release did not detail the amount of each contribution from each country, but half of the release – 30 million bbl – is expected to come from the U.S. However, the pricing impact from that announcement has been limited given that the amount of oil is small in comparison to the amount of oil that flows daily from Russia around the globe. According to IEA, Russia exports approximately 5 million b/d of crude oil, representing about 12 percent of global trade. The market continued to soar through the week with WTI rising $8.01/bbl on Friday to settle at $115.68/bbl.
Additionally, EIA reported that total domestic crude stocks decreased by 2.6 million bbl to 413.4 million bbl. The current stock level is approximately 15 percent lower than at the end of February 2021, contributing to pressure on domestic crude prices.
"Rising crude oil prices sent Michigan pump prices soaring to the highest prices since June of 2013," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "Pump prices will likely continue to rise as crude prices continue to climb."
Compared to last week, Metro Detroit’s average daily gas price increased. Metro Detroit’s current average is $4.00 per gallon, about 46 cents more than last week’s average and $1.26 more than this same time last year.
Click here to view AAA's state and metro gas averages
- Most expensive gas price averages: Marquette ($4.07), Metro Detroit ($4.00), Benton Harbor ($4.00)
- Least expensive gas price averages: Traverse City ($3.86), Grand Rapids ($3.93), Ann Arbor ($3.94)
