DEARBORN, MI— Gas prices in Michigan declined 20 cents compared to a week ago. Michigan drivers are now paying an average of $4.04 per gallon for regular unleaded. This price is 85 cents less than this time last month but still 74 cents more than this time last year.
Motorists are paying an average of $60 for a full 15-gallon tank of gasoline; an increase of about $9 from 2021's highest price last November.
According to new data from the Energy Information Administration (EIA), gas demand dropped from 9.25 million b/d to 8.54 million b/d. The rate is 1.24 million b/d lower than last year and is in line with demand at the end of July 2020, when COVID-19 restrictions were in place and fewer drivers hit the road. Moreover, according to EIA, total domestic gasoline stocks increased slightly by 200,000 bbl to 225.3 million bbl.
At the close of Wednesday’s formal trading session, WTI decreased by $3.76 to settle at $90.66. Crude prices fell last week as market concerns about weakening demand persisted after the EIA reported that total domestic crude inventory increased by 4.5 million bbl to 426.6 million bbl. The sharp inventory increase during the usually high-demand summer driving season signals low demand could continue pushing prices lower. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group also known as OPEC+, announced that it would boost collective crude production by 100,000 bbl next month. However, the slight increase is unlikely to have a significant pricing impact – especially if demand continues to decline.
"Michigan motorists continue to see lower prices at the pump, with some areas seeing prices below $4 a gallon," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If gas demand remains low and stocks continue to rise alongside falling crude prices, drivers will likely continue to see pump prices decrease."
Compared to last week, Metro Detroit’s average daily gas price decreased. Metro Detroit’s current average is $4.01 per gallon, about 19 cents less than last week’s average but still 64 cents more than this same time last year.
Click here to view AAA's state and metro gas averages
- Most expensive gas price averages: Traverse City ($4.41), Marquette ($4.36), Ann Arbor ($4.19)
- Least expensive gas price averages: Flint ($3.95), Grand Rapids ($3.98), Metro Detroit ($4.01)
