Michigan gas prices drop 10 cents from last week

DETROIT (FOX 2) - Michigan gas prices are down 10 cents from last week, according to AAA.

A regular unleaded gallon of gas currently costs an average of $4.04. While prices have decreased since last week, prices are still 30 cents higher than this time a month ago and $1.20 more than this time last year.

Related: Biden tapping oil reserve to control surging gas prices

"A decrease in demand alongside higher gasoline stocks has led to lower pump prices," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If these trends continue as crude oil prices decline, motorists could likely see gas prices move lower."

With the average price, it costs about $60 for a full 15-gallon tank of gas – about $9 more than during November's peak prices.

According to data from the Energy Information Administration (EIA), total domestic gasoline stocks increased by 800,000 bbl to 238.8 million bbl. Gasoline demand decreased from 8.63 million b/d to 8.5 million b/d. The drop in gas demand, alongside growth in total stocks, contributes to price decreases.

At the close of Friday’s formal trading session, WTI decreased by $1.01 to settle at $99.27. Earlier last week, crude prices climbed after the EIA’s weekly report revealed that total domestic crude stocks declined by 3.5 million bbl to 409.9 million bbl, approximately 18 percent lower than the level at the end of March 2021. 

However, crude prices reversed course amid news that the U.S. will release barrels from the reserve. However, the global oil market remains highly volatile, so additional news that threatens supply could put upward pressure on oil prices, AAA said.

Cheapest gas prices in Michigan:

1. Grand Rapids ($3.97)
2. Benton Harbor ($3.97)
3. Saginaw ($3.97)

Most expensive gas prices in Michigan:

1. Marquette ($4.22)
2. Traverse City ($4.18)
3. Ann Arbor ($4.11)