Michigan gas prices continue to rise
Published 11:12 am Monday, May 16, 2022
DEARBORN — Gas prices in Michigan are up five cents from a week ago.
Michigan drivers are now paying an average of $4.38 per gallon for regular unleaded, a new record high. This price is 48 cents more than this time last month and $1.43 more than this time last year.
Berrien County’s average daily gas price is currently $4.36, two cents below the state average. Cass County’s average is $4.45, seven cents above the state’s average and the highest average in Southwest Michigan.
Motorists are paying an average of $65 for a full 15-gallon tank of gasoline; an increase of about $14 from when prices were their highest last November.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 3.6 million bbl to 225 million bbl. Gasoline demand also decreased slightly from 8.86 million b/d to 8.7 million b/d. Typically, lower demand would put downward pressure on pump prices. However, crude prices remain volatile, and as they surge, pump prices follow suit.
At the close of Wednesday’s formal trading session, WTI increased by $5.95 to settle at $105.71. At the beginning of last week, the price of crude oil slid below $100 per barrel due to global market concern that crude demand will suffer as COVID lockdowns in China remain in place. However, crude prices reversed course over growing market worries that Ukrainian and European Union actions against Russian oil-and-natural gas companies could spark retaliation by Russia that leads to more market disruption and uncertainty.
Crude prices rose despite EIA reporting that domestic crude supply increased by 8.5 million bbl to 424.2 million bbl. The current level is approximately 12.5 percent lower than during the first week of May 2021.
“Despite the slight decrease in demand, Michigan gas prices continue to increase, setting a new record high,” said Adrienne Woodland, spokesperson for AAA-The Auto Club Group. “Pump prices will likely face upward pressure if gasoline stocks continue to decrease and oil prices remain above $105 per barrel.”
Ways to save on gasoline:
- Combine errands to limit driving time.
- Shop around for the best gas prices in your community.
- Consider paying cash.
- Remove excess weight in your vehicle.
- Drive conservatively.
- Enroll in savings programs.