Michigan gas prices drop 19 cents in week; still 64 cents more than year ago

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DETROIT (FOX 2) - The average price of a gallon of unleaded gas in Michigan is down 19 cents from this time a week ago, AAA said Monday.

This price is also 23 cents less than this time last month. However, it is still 64 cents more than this time a year ago.

Drivers are paying an average of $60 for a full 15-gallon tank of gas, an increase of about $9 from 2021's highest price last November.

Metro Detroit’s average daily gas price decreased from last week. The average in the area is $3.94 per gallon, about 26 cents less than last week’s average but still 56 cents more than this same time last year.

According to new data from the Energy Information Administration (EIA), gas demand increased from 8.66 million b/d to 9.01 million b/d. Total domestic gasoline stocks decreased by nearly 1 million bbl million to 205.7 million bbl. Tighter supply and robust gasoline demand would typically push pump prices higher; however, fluctuating oil prices have limited price increases.

At the close of Wednesday’s formal trading session, WTI decreased by $3.08 to settle at $85.83. Crude prices dropped after the EIA reported that total domestic commercial crude stocks increased dramatically by 4 million bbl. The inventory rise could mean that demand is falling due to growing economic concerns in the market. If economic growth stalls or reverses course, crude demand will likely to follow suit alongside prices, AAA said.

"The recent price spikes have reversed with Michigan motorists now seeing a double-digit drop in gas prices," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "If oil prices continue to decline, pump prices could follow suit."

Most expensive Michigan gas price averages: