As Memorial Day travel plans gear up, Michigan residents are noticing a decline in gas prices. The average cost for a gallon of regular unleaded gas in the state has fallen to $3.06, a 15-cent decrease from last week. This figure is also notably less, by six cents from the previous month, and 59 cents from this time last year, as reported by The Detroit News.
According to Detroit Free Press, these lower prices reflect a broader trend linked to dipping oil prices, although the implications for the wider economy remain mixed. While consumers may benefit from lower costs at the pump and potentially cheaper transportation fees for goods, there's concern that oil companies might reduce spending and hiring in response to the drop in oil prices.
GasBuddy surveys point to an 8-cent decrease in gasoline prices in Detroit since last week, resulting in an average price of $3.06 per gallon. Across Michigan, cities like Traverse City, Jackson, and Flint are experiencing some of the lowest gas price averages, ranging from $2.94 to $2.98 per gallon, as detailed by WXYZ. These regional price drops come despite a jump in oil prices over $4 per barrel in the last week.
Sources report that gasoline demand has fallen, with figures from the Energy Information Administration indicating a decrease from 9.09 million barrels per day to 8.71 million. Contrastingly, domestic gasoline supply has seen a slight increase, with production also on the rise, averaging 9.7 million barrels per day. Patrick De Haan, head of petroleum analysis at GasBuddy, suggested in a news release that "as refineries wrap up seasonal maintenance and prepare to boost output," prices might continue to drop, as per The Detroit News.
With Memorial Day weekend approaching and AAA predicting a significant number of Michigan residents traveling, these lower gas prices come as a potential boon. The Auto Club anticipates that over 1.3 million state denizens will travel at least 50 miles, with the vast majority opting to drive. These travel numbers, according to Detroit Free Press, could mark the second-highest on record, trailing only the pre-pandemic era.
