Michigan gas prices jump 32 cents, largest increase in nation
Michigan gas prices saw the largest increase of any state over the past week, rising by 32 cents per gallon.
This is according to Patrick De Haan, head of petroleum analysis at GasBuddy.
“We saw some of the largest weekly increases in gasoline and diesel prices in months in the last week,” De Haan said in an early Monday morning analysis.
This comes as refinery issues, foreign wars, and pipeline outages affect both the global and domestic markets.
Utah, Wisconsin, New Mexico, and Minnesota followed Michigan in the top five states with the biggest weekly gasoline spikes.
On the diesel front, Georgia, Florida, Kansas, Oklahoma, and Colorado saw the largest price increases. Georgia and Florida both saw increases around 65 cents per gallon.
De Haan warned that further increases could be seen across the nation, especially states in the Great Lakes region like Michigan.
“I’ll keep you updated if and when there’s a price spike in the Great Lakes region due to refinery issues – for now, there’s already higher prices (for everyone),” De Haan said Monday. “Michigan . . . is seeing $4.59 today but that was already in the pipeline and is NOT related to refinery issues. Another jump could happen this week based on market responses in the next few hours.”
On Monday, the current average for regular unleaded was $4.31 across Michigan. That is the same as the national average, which saw a 13 cent jump in the last week.
This is according to the latest data from AAA.
Compared to Sunday, the average from regular unleaded across the state held steady, but increased significantly from last week’s price of $4.03.
Mid-grade fuel in Michigan currently averages $4.92 per gallon, while premium stands at $5.52. Diesel averages $6.15 per gallon, up from $2.49 a year ago.
These increases are unusual for this time of year.
“Pump prices are currently comparable to early June,” AAA said in last week’s report. “The national average is increasing during a season when gas prices typically go down due to lower gasoline demand.”
One year ago, the average price for regular unleaded in Michigan was $3.05 per gallon.
That means drivers are paying more than $1.25 more per gallon today than they were a year ago. This is having a real impact on the cost of living for Michiganders, De Haan said.
“Ominous: Americans have collectively spent >$100 billion more on gasoline and diesel since March 1 compared to the same period a year ago,” he said on Sunday. “$109.2 billion through the end of today thus far, and currently adding ~$730 million more each day.”
Neighboring Indiana stands in sharp contrast to Michigan, consistently posting the nation’s lowest average gas prices. On Monday, Indiana once again had the lowest average price for regular unleaded at $3.59 per gallon—$0.72 less than Michigan’s average.
A big reason for Indiana’s consistently low prices is the recent temporary suspension of its 7% Gasoline Use Tax and 36-cent Gasoline Excise Tax.
Nationally, California continues to have the highest average gas prices at $6 per gallon.
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