Michigan gas price averages drop to lowest prices since July
DETROIT (FOX 2) - Michigan gas price averages are the lowest they've been in months, according to data from AAA.
Drivers are paying an average of $3.59 for a gallon of regular unleaded gas, down from 13 cents last week and 6 cents this time a month ago.
Metro Detroit’s average daily gas price decreased from 15 cents a week ago. Metro Detroit’s current average is $3.54 per gallon. This is 76 cents less than this time a year ago.
"Michigan motorists are seeing the lowest gas prices since July," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If oil prices continue to decline, drivers can expect further price drops at the pump in the weeks ahead."
According to new data from the Energy Information Administration (EIA), gas demand dropped significantly from 8.62 to 8.01 million b/d. On the other hand, total domestic gasoline stocks increased substantially by 6.5 million bbl to 227 million bbl. Growing supply, amid low demand, has pushed pump prices down, AAA said.
At the close of Wednesday’s formal trading session, WTI decreased by $5.01 to settle at $84.22. Oil prices fell sharply due to rising market concern that if interest rates continue to increase, the economy could tip into a recession. If a recession occurs, crude demand and prices would likely drop. Additionally, the EIA reported that total commercial crude stocks decreased by 2.2 million bbl to 414.1 million bbl.
Most expensive Michigan gas price averages:
- Jackson ($3.67)
- Marquette ($3.65)
- Lansing ($3.64)
Least expensive Michigan gas price averages:
- Metro Detroit ($3.54)
- Benton Harbor ($3.55)
- Flint ($3.57)