Michigan gas price average falls 17 cents ahead of Christmas

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An undated file photo of a gas pump.

DETROIT (FOX 2) - Michigan gas price averages are down 17 cents from last week, according to AAA.

The average is now $3.07 per gallon for regular unleaded gas.

This price is 81 cents less than this time last month and 8 cents less than this time last year. It's costing $46 for a full 15-gallon tank of gasoline, about $5 less than 2021's highest price last November.

In Metro Detroit, averages are the lowest they have been since May 2021. The average is $2.99 per gallon, which is about 11 cents less than last week’s average and 27 cents less than this same time last year.

AAA said gas prices are now on par with last year's holiday season after a spike.

"Michigan motorists continue to see gas prices decline with the state average hitting a new 2022-low and a few metro areas falling below $3 a gallon," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "As demand remains low and stocks grow, drivers will likely continue to see pump prices decrease through the holiday week."

According to new data from the Energy Information Administration (EIA), gas demand decreased slightly from 8.36 to 8.26 million b/d. This coincides with the arrival of the winter driving season when fewer people hit the roads due to less daylight and more inclement weather. Meanwhile, total domestic gasoline stocks rose significantly by 4.5 million bbl to 223.6 million bbl. Increasing supply and lower gasoline demand are pushing pump prices lower, AAA said.

At the close of Wednesday’s formal trading session, WTI increased by $1.89 to settle at $77.28. Crude prices increased last week due to a weaker dollar and higher market optimism after new data showed that inflation rose at its slowest rate since December 2021. Additionally, the EIA reported that total domestic commercial crude stocks expanded substantially by 10.2 million bbl to 424.1 million bbl.

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