Michigan gas price averages drop 7 cents from last week; still 9 cents more than last month

article

DETROIT (FOX 2) - Michigan gas price averages are down 7 cents from this time last week, according to AAA.

The average price is $3.38 per gallon for regular unleaded gasoline. This is 9 cents more than this time a month ago but 76 cents less than this time last year.

This translates to about $50 to fill a 15-gallon tank, down about $28 from 2022's highest price in June.

Compared to last week, Metro Detroit’s average daily gas price decreased about 5 cents to $3.43 per gallon, about 5 cents less than last week’s average and 76 cents less than this same time last year.

"Despite an increase in demand, Michigan motorists continue to see lower prices at the pump," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If crude oil prices increase, drivers could see this downward trend reverse."

According to new data from the Energy Information Administration (EIA), gas demand increased from 8.59 million to 8.96 million b/d. Meanwhile, total domestic gasoline stocks decreased significantly by 6.4 million bbl to 229.6 million bbl. Increasing demand amid tighter supply would typically push pump prices higher; however, recent lower oil prices have pushed prices down, AAA said.

At the close of Wednesday’s formal trading session, WTI increased by $1.23 to settle at $70.90. Crude prices rose after the EIA reported that demand grew amid a reduction in gasoline stocks, signaling to the market that demand may be more robust than anticipated this year despite ongoing economic concerns. Additionally, the EIA reported that total domestic commercial crude inventories increased by 1.1 million bbl to 481.2 million bbl.

Most expensive gas price averages: