DETROIT (WWJ) — Michigan drivers are facing a jolt at the pump this week as gas prices across the state surge, with experts warning that the $5 per gallon mark is edging closer.
Speaking with WWJ Newsradio 950’s Taylor Dietz, Patrick DeHaan, Head of Petroleum Analysis at GasBuddy, predicted a significant price hike over the next 24 hours. While some stations in Michigan have already jumped to $4.60, DeHaan expects the state average to climb much higher.
"I would expect that here over the next 12 to 24 hours, most stations in Michigan could get perilously close to the $5 a gallon mark," DeHaan said, Wednesday morning. "We could see average gas stations raising prices from $4.70 to $4.95 a gallon".
Why Are Prices Spiking?
DeHaan pointed to a "perfect storm" of domestic refinery issues and international supply disruptions as the primary drivers behind the sudden increase.
1. Local Refinery Outages
The most immediate impact comes from a major power disruption at a critical regional facility.
"A lot of this is happening due to the refinery snags over the last couple of days, specifically the BP Whiting refinery which had an uncontrolled power loss over the weekend," DeHaan explained.
As the region’s largest refinery, DeHaan warned that the outage will likely have a "multi-week impact on supply". Additionally, a Phillips 66 refinery near St. Louis has also reported recent technical issues, further tightening the market.
2. Global Supply and the Strait of Hormuz
Beyond local mechanical failures, global geopolitical tension is pushing oil prices upward. DeHaan noted that the Strait of Hormuz—a vital global shipping lane—remains blocked, creating a long-term bottleneck for crude oil.
"Unfortunately, all of this is compounded by a rise in oil as the Strait of Hormuz remains blocked," DeHaan said. He added that if the blockage is extended, it could "continue to fuel oil gas prices for much of the next several months".
Impact on Summer Travel
The timing of the spike is particularly painful for consumers as the summer travel season approaches. With May just around the corner, the increased cost of fuel is expected to take a bite out of household budgets.
"Americans are spending tens of billions of dollars more on fuel than they were a year ago every week," DeHaan noted. "A sizeable jump in price is going to set many Americans back from being able to fully fill their tank up, or it’s certainly going to impact their discretionary spending".
While refinery issues typically resolve within a few weeks, DeHaan warned that relief at the pump depends heavily on the reopening of international shipping routes. Until then, Michigan motorists should prepare for record-setting prices.
