Michigan gas prices dropped again, likely to go lower unless demand picks up

Frank Witsil, Detroit Free Press
·2 min read
4
Eleven states now have average prices below $3.

Gasoline prices in Michigan continued to drop Monday, falling 11 cents from a week ago to $3.38 a gallon for regular unleaded, according to AAA Michigan. Gas prices fell through most of the second half of 2022, increased, and then began edging downward — again.

"Michigan motorists continue to see lower prices at the pump for the third straight week," said Adrienne Woodland, spokeswoman for AAA, which tracks prices at about 120,000 stations nationwide. "If demand remains low, drivers will likely see gas prices continue to decline."

Monday's average price is 23 cents less than this time last month and 94 cents less than this time last year. Motorists are paying about $50 for a full 15-gallon tank of gasoline; about $28 less from 2022's highest price last June. The national average price is $3.54 a gallon.

Metro Detroit’s current average is $3.39 per gallon, about 9 cents less than last week’s average.

Most expensive gas prices

  • Traverse City: $3.65

  • Marquette: $3.52

  • Ann Arbor: $3.47

Least expensive gas prices

  • Grand Rapids: $3.33

  • Flint: $3.33

  • Benton Harbor: $3.35

Falling gas demand

Gas demand decreased significantly from 9.51 to 8.62 million barrels a day, according to new data from the Energy Information Administration. The fall in demand is in line with what market observers expected. Total domestic gasoline stocks increased by 1.8 million barrels to 222.9 million barrels.

"In addition to gasoline prices declining, the average price of a gallon of diesel will join gasoline in the days ahead, falling below $4 per gallon in the next 48 hours or so, a sign of how far we’ve come," said Patrick De Haan, head of petroleum analysis at GasBuddy, another group that tracks prices. "Americans are spending hundreds of millions less on fuel every week compared to a year ago, and that’s a number that could rise further as prices are poised to continue trending lower this week."

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Lower demand, alongside an increase in stocks, has contributed to pushing pump prices lower.

West Texas Intermediate, a global oil benchmark, decreased by $3.06 a barrel to settle at $68.60. Oil prices decreased amid ongoing market concerns that rising interest rates will tip the economy into a recession. If a recession occurs, oil demand and prices will likely decline.

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.

This article originally appeared on Detroit Free Press: Michigan gas prices drop for 3rd straight week, down 11 cents