Michigan gas prices jump 18 cents, at highest price in months - Detroit Free Press
Michigan gas prices jump 18 cents, at highest price in months
Michigan gas prices surge 18 cents to $3.67 a gallon, the highest in 3 months
Frank Witsil
Michigan gas prices jumped 18 cents Monday from the week before to $3.67 a gallon, the highest state average in a few months according to AAA.
Gasoline prices fluctuate from week to week, but 18 cents is a significant increase, a change, analysts said, that is connected to steadily increasing oil prices and a summer heat wave that has prevented refineries from running at full capacity.
"Michigan motorists are seeing the highest gas prices in over three months," Adrienne Woodland, a spokeswoman for the auto club, said, adding: "With supplies tight, if demand climbs, pump prices will likely follow suit."
The average price is 11 cents more than last month, but still 56 cents less than a year ago. Motorists are paying an average of $55 for a full 15-gallon tank of gasoline.
Gas demand increased slightly from 8.76 to 8.86 million barrels a day, according to the Energy Information Administration. Meanwhile, total domestic gasoline stocks fell from 219.5 to 218.4 million barrels a day.
Why are Michigan gas prices increasing?
Lower refinery oil usage rates could influence how much gas prices decline.
Tom Kloza, the global head of energy analysis at the Oil Price Information Service, said that refiners in Texas, Louisiana, Tennessee and some other states are struggling to run at maximum rates because the temperatures age getting near 100 degrees, USA TODAY reported.
More: Neal Rubin: Behind scenes at DTE: Progress and a riveting past, but watch for squirrels
Gasoline production dropped nationwide, with the largest drop by west coast refineries.
In addition, the price of oil is going up, Kloza said. The Organization of the Petroleum Exporting Countries and its allies are affecting supply and posting prices, according to USA TODAY's report. And on top of that, there is concern that hurricanes also could also affect supply.
Gas prices across Michigan
Compared to last week, Metro Detroit’s average daily gas price also increased. Metro Detroit’s average is $3.69 per gallon, about 14 cents more than last week’s average but still 53 cents less than this same time last year.
The most expensive gas price averages
- Marquette: $3.78
- Ann Arbor: $3.72
- Metro Detroit: $3.69
The least expensive gas price averages
- Flint: $3.61
- Lansing: $3.64
- Saginaw: $3.64
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.