Gas prices in Michigan are down about 4 cents compared to a week ago, with Michigan drivers now paying an average of $2.72 per gallon for regular unleaded. This price is 22 cents more than this time last month and 46 cents more than this time last year.
Motorists are paying an average of $41 for a full 15-gallon tank of gasoline; an increase of $2 from when prices were their highest last January.
Gas prices, of course, are driven by supply and demand and according to new data from the Energy Information Administration (EIA), total domestic gas stocks decreased by 13.6 million bbl to 243.5 million bbl, as demand increased from 7.2 million b/d to 8.15 million b/d last week.
At the close of Thursday’s formal trading session, WTI increased by $2.55 to settle at $63.83. Crude prices increased last week after the Organization of the Petroleum Exporting Countries (OPEC) decided with its allies, including Russia, to maintain existing crude production cuts of 7 million b/d through April.
Additionally, Saudi Arabia — a member of OPEC — agreed to extend its voluntary production cut of 1 million b/d by one month. Crude prices have increased despite EIA’s latest weekly report revealing that total domestic inventories grew by 21.6 million bbl to 484.6 million bbl.
“Despite the slight drop in Michigan gas prices, the National average increased five cents compared to last week,” said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If crude prices continue to rise alongside tightening gas supplies, Michigan motorists could possibly see higher pump prices this month."
Compared to last week, Metro Detroit’s average daily gas price held steady. Metro Detroit’s current average is $2.75 per gallon, the same price as last week’s average and 44 cents more than this same time last year.
Related
Most expensive gas price averages: Marquette ($2.77), Ann Arbor ($2.76), Metro Detroit ($2.75) Least expensive gas price averages: Traverse City ($2.53), Lansing ($2.67), Flint ($2.67)
Daily national, state, and metro gas price averages can be found at Gasprices.aaa.com.