Gas prices on the rise in Michigan

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DETROIT, Mich., (January 22, 2019) — Gas prices in Michigan are back on the rise, after declining an average total of 11 cents in 10 days. Tuesday’s state average of $2.12 per gallon is 6 cents higher than yesterday, and the same price as this time last week. 

Despite the increase, drivers are still paying about 4 cents per gallon less than a month ago, and 47 cents less than this time last year. The savings are even greater when compared to some of the highest prices of 2018. On average, motorists are paying $1.01 per gallon less than when prices peaked last Memorial Day, and 92 cents per gallon less than what they paid last October.

Click here to view AAA’s state and metro gas price averages

  • Most expensive gas price averages: Traverse City ($2.22), Marquette ($2.20), Ann Arbor ($2.15)
  • Least expensive gas price averages: Lansing-East Lansing ($2.08), Metro Detroit ($2.10), Saginaw-Bay City-Midland ($2.11)

“Rising gas prices are not uncommon during the month of January,” said Nancy Cain, spokesperson, AAA – The Auto Club Group. “Last January, pump prices jumped by increments of 7 and 12 cents, due to rising oil prices. So far this year, oil rose $8 per barrel, largely due to reduced OPEC output and renewed optimism for a US-China trade deal. However, the tide may have turned, Tuesday morning. Oil and gasoline futures are now moving lower, due to global demand concerns. This should help alleviate upward pressure on pump prices for now, but AAA still expects gas prices to spring higher in the coming months, with the national average peaking at around $2.75 by Memorial Day.”

REFINERY MAINTENANCE SEASON

Additional increases are likely, in the coming weeks, as refiners enter maintenance season and prepare to switch to a more expensive-to-produce summer-blend gasoline. According to OPIS, two large turnarounds have commenced:

  • In the Northeast, some extensive work is being performed at Philadelphia Energy Solutions’ complex on the Delaware River
  • At the Gulf Coast, ExxonMobil has started a major turnaround that may keep a 280,000-b/d crude unit out of action for 40-60 days

OPIS reports that Gulf Coast turnaround activity is expected to peak in March with about 1 million b/d of equipment scheduled to be sidelined. While the maintenance should cut demand for U.S. crude, stronger product prices could drag crude higher. Gasoline is a perceived beneficiary of the refining downtime.

EIA FORECAST

In the latest short-term energy outlook, EIA expects U.S. regular retail gasoline prices to follow changes to the cost of crude oil, dipping from an average of $2.73/gal in 2018 to $2.47/gal in 2019, before rising to $2.62/gal in 2020.

                            CURRENT AND PAST PRICE AVERAGES

                                       Regular Unleaded Gasoline

SundaySaturdayWeek AgoMonth AgoOne Year Ago2018 Low2018 HighRecord High
National$2.252$2.245$2.243$2.337$2.542$2.49   (1/3/2018)$2.97 (5/26/2018)$4.11 (7/17/2008)
Michigan$2.118$2.058$2.124$2.158$2.593$2.42 (2/21/2018)$3.13 (5/25/2018)$4.26 (5/4/2011)
Detroit$2.102$2.055$2.073$2.184$2.610$2.44 (2/27/2018)$3.11 (5/25/2018)$4.24 (5/4/2011)
Click here to view current gasoline price averages

  

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 www.GasPrices.AAA.com.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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