Metro Detroit, Ann Arbor have some of Michigan's highest gas prices - Detroit Free Press

Metro Detroit, Ann Arbor have some of Michigan's highest gas prices

Michigan gas up 9 cents, to $3.56 a gallon as the price of oil rises
Frank Witsil

Gas prices in Michigan were up 9 cents Monday from a week ago, with people paying an average of $3.56 a gallon for regular unleaded, and in metro Detroit, a little more, $3.59 a gallon, according to AAA.

That's an average of $53 for a full 15-gallon tank of gasoline, but still more than $1 less a gallon than a year ago.

"Michigan motorists are seeing higher prices at the pump compared to last week," Adrienne Woodland, a spokeswoman for Auto Club. "If oil prices continue to rise, pump prices will likely follow suit."

Demand down, but oil prices up

Demand fell significantly from 9.6 to 8.76 million barrels a day, according to the Energy Information Administration. Meanwhile, total domestic gasoline stocks stayed flat at 219.5 million barrels. Lower gas demand usually pushes pump prices lower, but rising oil prices have increased them.

West Texas Intermediate oil, a benchmark representing oil produced in the U.S., increased 92 cents to settle at $75.75. Oil prices went up as a result of rising market optimism that fewer interest rate hikes could be on the horizon.

The U.S. Consumer Price Index report saw a smaller-than-expected increase in June.

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Michigan's most, least expensive gas

Before the release of the CPI report, the market had been concerned that more interest rate increases could tip the economy into a recession. If that happens, oil demand and prices will likely decline. The EIA also reported that total domestic commercial crude inventories increased by 5.9 million barrels to 458.1 million barrels.

In addition to metro Detroit, the the most expensive gas price averages around the state were: Ann Arbor, $3.62 a gallon, and Jackson, $3.57. The least expensive were: Marquette, $3.50; Grand Rapids, $3.52; and Flint, $3.53.

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