Michigan gas prices are soaring, setting a new 2023 record - Detroit Free Press
Michigan gas prices are soaring, setting a new 2023 record
Why Michigan gasoline price set a new 2023 record and could go even higher
Frank Witsil
For the second week in a row, the average Michigan gas price set a new 2023 record, and, AAA said, there’s a good chance it soon could go even higher.
Michigan’s average price for regular unleaded gasoline on Monday hit $3.91 a gallon, an increase of 15 cents from a week ago and 44 cents from a month ago. The average for metro was slightly less, at $3.87 a gallon, but higher than a week ago.
"Gas prices across Michigan continue to rise, reaching another milestone for high prices this year," Adrienne Woodland, a spokeswoman for the club, said. "If gas demand remains high, alongside increasing oil prices, drivers should brace for increases in pump prices."
Michigan motorists are now paying an average of $58 for a full 15-gallon tank of gasoline.
Reduced OPEC+ oil output
Part of the reason for the soaring prices is that oil output has been reduced by OPEC+ oil producers during the summer when demand is at its high point, causing crude oil prices to go up.
In addition, Saudi Arabia announced earlier this month it that planned to extend its production city of one million barrels of oil a day through the end of September. That, the Associated Press reported, has boosted energy prices and helped push U.S. gas prices higher.
Nationwide, gas prices are on the rise, edging and exceeding $4 a gallon in several states, and it has already surpassed $5 a gallon in California and Washington State, where the averages are $5.14 and $5.02, respectively.
The record average gas price nationionally was $5.02 a gallon in 2022, according to AAA.
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Summer heatwave, storms
Meanwhile, the summer heat wave in America has limited domestic oil refinery capacity.
And severe storms, particularly hurricanes, could threaten refineries — and supply — along the gulf coast.
Gas demand jumped from 8.84 million barrels of oil last week to 9.30 million barrels, according to the Energy Information Administration. As total domestic gasoline stocks decreased from 219.1 million barrels to 216.4 million barrels.
Higher demand, amid tighter supply, also has helped to keep pump prices high.
West Texas Intermediate increased by $1.48 to settle at $84.40 a barrel. The price of oil , AA said, has not been this high since mid-April. Prices have increased amid market optimism that oil demand will be more robust than expected during this half of 2023 and into 2024.
Gas prices across the state
Michigan’s most expensive average gas prices:
- Jackson: $3.97
- Marquette: $3.96
- Traverse City: $3.96
The least expensive:
- Metro Detroit: $3.87
- Benton Harbor: $3.87
- Ann Arbor: $3.93
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.