Gas prices in Michigan dropped 8 cents from a week ago. Michigan drivers are now paying an average of $3.45 per gallon for regular unleaded. This price is 18 cents more than this time last month but still 78 cents less than this time last year.
Motorists are paying an average of $51 for a full 15-gallon tank of gasoline; a discount of about $27 from 2022’s highest price last June.
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 8.56 million to 8.59 million b/d. Meanwhile, total domestic gasoline stocks decreased by 2.1 million bbl to 236 million bbl. Typically, increased demand amid tighter supply would push pump prices higher; however, lower oil prices have countered this effect.
At the close of Wednesday’s formal trading session, WTI decreased by $3.72 to settle at $67.61. Crude prices dropped last week amid rising market concern about the health of the global banking sector. Low confidence in the sector and fears that regulatory responses could tip the economy into a recession could push crude demand down alongside prices. Additionally, the EIA reported that total domestic commercial crude inventories increased by 1.6 million bbl to 480.1 million bbl.
“Michigan motorists are seeing some slight relief at the pump as prices drop across the state,” said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. “If crude oil prices keep falling, drivers could see pump prices continue to decline.”
