DEARBORN, MI— Gas prices in Michigan are down 8 cents compared to last week. Michigan drivers are now paying an average of $4.16 per gallon for regular unleaded. This price is still 79 cents more than this time last month and $1.41 more than this time last year.
Motorists are paying an average of $62 for a full 15-gallon tank of gasoline; an increase of about $11 from when prices were their highest last November.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks fell by 3.6 million bbl to 241 million bbl last week. Gasoline demand also decreased slightly from 8.96 million b/d to 8.94 million b/d. The drop in gas demand is contributing to price decreases, but the recent reversal in oil prices is creating greater downward pressure on pump prices.
At the close of Wednesday’s formal trading session, WTI decreased by $1.40 to settle at $95.04. After crude prices spiked in response to Russia’s invasion of Ukraine, crude prices changed course in reaction to China announcing new lockdowns alongside rising COVID-19 infection rates. The price of oil has moved lower due to market concerns that crude oil demand will decline, as it did in 2020 when countries sought to curb COVID-19 transmission rates. Additionally, EIA reported that total domestic crude stocks increased by 4.3 million bbl to 415.9 million bbl. The recent growth in total domestic crude inventories also contributes to the current reduction in crude prices.
"After a volatile week for the oil markets, Michigan motorists are beginning to see a slight drop in gas prices," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If oil prices continue to decline, pump prices will likely follow suit."
Compared to last week, Metro Detroit’s average daily gas price decreased. Metro Detroit’s current average is $4.18 per gallon, about 7 cents less than last week’s average and but still $1.43 more than this same time last year.
Click here to view AAA's state and metro gas averages
- Most expensive gas price averages: Marquette ($4.28), Traverse City ($4.22), Ann Arbor ($4.19)
- Least expensive gas price averages: Grand Rapids ($4.13), Saginaw ($4.15), Jackson ($4.15)
