Michigan gas prices reach record high amid Memorial Day demand spike
DETROIT (FOX 2) - Gas prices are at a record high in Michigan, according to AAA.
A gallon of regular unleaded gas costs an average of $4.60, up three cents from last week. This price is 58 cents more than this time last month and $1.55 more than this time last year.
A full 15-gallon tank of gas is now an average of $69, an increase of about $18 from when prices were their highest last November.
The average price in Metro Detroit is $4.71 per gallon, about 12 cents more than last week’s average and $1.63 more than this same time last year.
"A spike in demand for the busy Memorial Day weekend helped push Michigan gas prices to a new record high," said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. "A post holiday decline in demand could have motorists seeing some stability at the pump, but if crude oil prices continue to trade above $105 per barrel then gas prices will likely remain elevated."
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 500,000 bbl to 219.7 million bbl. Gasoline demand also dipped from 9 million b/d to 8.8 million b/d, approximately 700,000 b/d lower than a year ago. The softening of gas demand helped minimize price increases ahead of Memorial Day. However, gas demand may spike over the holiday weekend, as American drivers take to the roads for the holiday.
At the close of Wednesday’s formal trading session, WTI increased by 56 cents to settle at $110.33. Crude prices increased slightly after EIA reported that the domestic crude supply decreased by 1 million bbl to 419.8 million bbl. The current level is approximately 13.3 percent lower than during the third week of May 2021. However, the price of oil faced strong headwinds earlier last week as the market continued to worry about an economic slowdown that could cause crude demand to decline. Crude prices will likely follow suit if demand drops, AAA said.
Most expensive gas in Michigan
- Metro Detroit ($4.71)
- Marquette ($4.65)
- Ann Arbor ($4.62)
Least expensive gas in Michigan:
- Grand Rapids ($4.49)
- Saginaw ($4.53)
- Lansing ($4.54)