After two weeks of setting new gas price highs for 2023, the average price of gas in Michigan fell Monday by 5 cents, down to $3.86 a gallon for regular unleaded, according to AAA.
Still, prices rising again is likely, industry experts say.
The prediction is based on a combination of factors, including a rare tropical storm bearing down on California, and other weather systems in the Atlantic threatening to disrupt oil production and refineries in the Gulf of Mexico. There’s also the recent OPEC+ production cuts, which is pushing up the price of oil.
Patrick De Haan, head of petroleum analysis at GasBuddy, which tracks gas prices, said that prices “could climb slightly higher as we get closer to Labor Day,” citing rising oil prices under pressure by OPEC+ nations.
Metro Detroit hits 2023 high Tuesday
Michigan motorists are paying an average of $57 for a full 15-gallon tank of gasoline.
“Michigan’s gas prices have steadily declined after setting a new 2023 high,” said Adrienne Woodland, a spokeswoman for AAA. “While demand has decreased slightly, gas prices may continue to fluctuate through mid-September.”
The average price in the state is 34 cents more than last month, and 5 cents less than a year ago.
Moreover, metro Detroit’s average daily gas price average also declined slightly from hitting a new 2023 high of $3.88 a gallon on Tuesday. Metro Detroit’s average was $3.85 per gallon, about 2 cents less than last week’s average and 14 cents less than this same time last year.
Heatwave and then hurricanes
Experts say climate change has affected the price of gas, including this summer’s heatwave.
The record heat has prevented refineries from running at full capacity, which affects production.
On top of that, meteorologists are watching four potential storms with two that reportedly could end up in the Gulf, disrupting gas operations. Hurricane season runs to the end of November, with the worst of the storms from now until mid-October.
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Price of oil boosts gas prices
Gas demand slid from 9.30 to 8.85 million barrels a day, according to the Energy Information Administration. Total domestic gasoline stocks slightly decreased from 216.4 to 216.2 million barrels of oil. Fluctuating oil prices have kept pump prices elevated.
West Texas Intermediate, a form of crude oil, decreased by $1.61 to settle at $79.38.
Oil prices declined amid ongoing concern that the the economy could tip into a recession.
High, low around Michigan
Michigan areas with the most expensive gas price averages per gallon:
- Marquette: $4
- Jackson: $3.92
- Traverse City: $3.90
Areas with the least expensive gas price averages:
- Saginaw: $3.84
- Flint: $3.84
- Metro Detroit: $3.85
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.