Michigan residents are facing a surge at the pumps as gas prices have shot up by 12 cents in the past week, hitting a new high for the year at an average of $3.71 per gallon for regular unleaded. The current spike, which sees drivers paying 17 cents more than they did a month ago and 19 cents higher than the same period last year, has been attributed to a tightening in supply, according to The Detroit News.
If the trend of crude oil price increases continues, alongside the aforementioned tight supply, prices at the pump could climb further, CBS News Detroit reported, quoting AAA spokeswoman Adrienne Woodland. Motorists now face paying around $55 to fill a typical 15-gallon tank, which is roughly $3 shy from the peak price experienced last August.
According to TV6 News, Woodland emphasized the impact of these trends on Michigan motorists, cautioning that "If crude oil prices rise, alongside tight supply, gas prices may continue to rise." This latest escalation has seen areas such as Jackson, Lansing, and Saginaw feeling the most pressure, with some of the highest gasoline prices in the state at $3.81, $3.79, and $3.78 per gallon, respectively.
Data from the Energy Information Administration (EIA) indicates a recent dip in gas demand, yet despite a decrease in total domestic gasoline stocks by .6 million barrels, oil prices have modestly retreated. This is parallel to a fall of 6.4 million barrels in crude oil inventories, with WTI decreasing by 55 cents at the close of Wednesday’s formal trading session. In contrast, residents of Marquette, Metro Detroit, and Benton Harbor are finding some relief with the cheapest prices in the state.
To combat escalating fuel costs, AAA has put forth several measures to help consumers save money at the pump. Among them are combining errands to lessen driving time, shopping around for the best local gas prices, and paying cash when possible, as some retailers charge extra for credit card payments. They also suggest removing any excess weight from vehicles, driving more conservatively to improve fuel economy, and enrolling in savings programs like Shell’s Fuel Rewards which can offer benefits like a 5-cent per gallon discount for AAA members.
