DEARBORN, MI— Gas prices in Michigan dropped 4 cents compared to last week. Michigan drivers are now paying an average of $3.34 per gallon for regular unleaded. This price is 37 cents less than this time last month and $1.02 less than this time last year.
Motorists are paying an average of $50 for a full 15-gallon tank of gasoline; a discount of about $28 from 2022's highest price last June.
According to new data from the Energy Information Administration (EIA), gas demand grew substantially from 8.62 to 9.30 million b/d. The spike is higher than some market observers expected; the estimate could be revised when EIA releases final demand measurements for May. Meanwhile, total domestic gasoline stocks decreased by 3.2 million bbl to 219.7 million bbl. Higher demand and a reduction in stocks have slowed pump price decreases.
At the close of Wednesday’s formal trading session, WTI decreased by $1.15 to settle at $72.56. Oil prices declined amid ongoing market uncertainty regarding stalled U.S. debt ceiling negotiations. The market is concerned that if the debt limit is breached, it could contribute to the economy tipping into a recession. If a recession occurs, crude demand and prices would likely decline. Additionally, the EIA reported that total domestic commercial crude inventories increased by 3 million bbl to 462.6 million bbl.
"An increase in demand would typically lead to higher gas prices, however low crude oil prices have helped Michigan motorists see some stability at the pump," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If demand continues to grow, alongside tighter gasoline stocks, the downward trend in pump prices could slow."
Compared to last week, Metro Detroit’s average daily gas price decreased slightly. Metro Detroit’s current average is $3.37 per gallon, about 2 cents less than last week’s average and $1.04 less than this same time last year.
Click here to view AAA's state and metro gas averages
- Most expensive gas price averages: Traverse City ($3.61), Marquette ($3.51), Jackson ($3.44)
- Least expensive gas price averages: Grand Rapids ($3.26), Flint ($3.28), Lansing ($3.29)
