DEARBORN, MI— Gas prices in Michigan dropped 15 cents from last week.
Michigan drivers are now paying an average of $2.96 per gallon for regular unleaded, which is a new 2023-low. This price is 35 cents less than this time last month and 12 cents less than this time last year.
Motorists are paying an average of $44 for a full 15-gallon tank of gasoline; a discount of about $34 from 2022's highest price last June.
According to new data from the Energy Information Administration (EIA), gas demand increased from 8.47 to 8.86 million b/d. Meanwhile, total domestic gasoline stocks increased slightly to 224 million bbl. Typically, higher demand would push pump prices higher, but lower oil prices have pushed prices lower.
At the close of Wednesday’s formal trading session, WTI increased by 86 cents to settle at $69.47. Oil prices increased after the US Federal Reserve announced that it plans to hold interest rates steady through the end of the year and potentially reduce rates up to three times in 2024. The market had been concerned that the economy could tip into a recession if interest rates kept increasing. Oil demand and prices would likely decline if a recession occurred. Additionally, the EIA reported that total domestic commercial crude inventories decreased by 4.3 million bbl to 440.7 million bbl.
With more than 3.3 million Michigan residents planning to drive to their holiday destinations, AAA expects road travel to be the second highest on record after 2019. Drivers can expect to pay about the same or less for a gallon of gas than they did last holiday season, when the Michigan average on Christmas Day and New Year’s Day was $2.99 and $3.19, respectively.
"As the state average drops below $3 a gallon, Michigan motorists are seeing the lowest gas prices so far this year," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If oil prices remain low, drivers can expect pump prices to do the same during the holiday season."
Compared to last week, Metro Detroit’s average daily gas price decreased. Metro Detroit’s current average is $2.97 per gallon, about 12 cents less than last week’s average and 3 cents less than this same time last year.
Click here to view AAA's state and metro gas averages.
- Most expensive gas price averages: Marquette ($3.18), Jackson ($3.11), Ann Arbor ($3.04)
- Least expensive gas price averages: Traverse City ($2.87), Benton Harbor ($2.88), Flint ($2.89)
