Michigan Gas Prices Fall Below National Average — Expected to Continue Downward

If you’ve filled up at the gas pump in recent days you might have noticed a nice downward trend, and indications are that the savings could mount up as prices are projected to continue to fall in the days ahead.

According to Nancy Cain, spokesperson for AAA – The Auto Club Group, gasoline prices in Michigan have declined for 10 consecutive days now for a total of 15-cents, putting the average cost of gas in Michigan below the national average for the first time in recent memory.

Michigan’s statewide average was $2.88 per gallon on Sunday, about 12-cents less than last week’s average, 4-cents less than a month ago, but 35-cents more than this same time last year. The price in Benton Harbor-St. Joe was pegged overnight at $2.87 per gallon.

Triple-A’s Cain says, “Fuel prices plunged on the stock market last week, which should clear the way for a significant discount at the pump.” She adds, “Motorists should see a 5-10 cent drop or more in the next 10 days. This is the type of downward movement we normally see at the pump during the fall. However, upward pressure could easily return later this month, as the market braces for U.S. sanctions against Iranian crude, and what that might mean for global supply and demand.”

Metro Detroit’s average daily gas price has also decreased significantly. Metro Detroit’s current average of $2.90 per gallon, about 8 cents less than last week’s average and 3 cents less than last month. However, motorists there are still paying about 44 cents more than this time last year.

Of the ten Michigan metro areas surveyed by AAA for self-serve unleaded fuel prices, the highest average price can be found in Marquette, where it’s $3.04 per gallon. The lowest average price can be found in Lansing-East Lansing, where it’s $2.80 per gallon.

Michigan ranks:

• 23rd in the nation for most expensive average daily gas price ($2.88)
• 2nd in the nation for biggest weekly change (12 cents)
• 36th in the nation for biggest monthly change (4 cents)

Here are key oil and gas fundamentals that help explain the current pricing:

• Last week on the stock market (NYMEX)
  • U.S. crude oil prices dropped $3 per barrel
  • U.S. gasoline prices declined 14 cents
• Supply and Demand (Weekly Energy Information Administration Report)
  • U.S. Crude Oil
    • Production reached a new record high. At 11.2 million barrels per day, total crude output is nearly 18 percent higher than this time last year.
    • Supply levels increased for the third consecutive week – registering nearly 1.5-percent higher than the week before. Although U.S. oil stocks are higher than last month, they remain 11-percent below last year’s levels.
  • U.S. Motor Gasoline
    • Supplies rose by nearly a half percent, and are nearly 7-percent stronger than this time last year.
    • Production rates dipped by nearly 2.5-percent, yet remain on pace with this time last year.
    • Gasoline demand, according to EIA measurements, is 2.7-percent stronger than this time last year.

Here’s how you can find local gas prices wherever you are at:

• Daily national, state, and metro gas price averages can be found at this link:  Gasprices.aaa.com
• Motorists can find the lowest gas prices on their smartphone or tablet with the free AAA Mobile app. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance.

                            CURRENT AND PAST PRICE AVERAGES

                                       Regular Unleaded Gasoline

Here is detail on the gas price survey methodology:

Every day up to 130,000 stations in the nation and more than 4,200 stations in Michigan are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

AAA updates fuel price averages daily at this link:  www.GasPrices.AAA.com.

AAA in Michigan celebrated its 100th Anniversary – A Century of Service in 2016 and has over 1.4 million members across the state. It is part of The Auto Club Group (ACG).

The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.6 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.