Michigan residents have a bit of financial breathing room this holiday season, with gas prices hitting a new low for 2025. According to AAA-The Auto Club Group, the average cost of regular unleaded gas is now $2.73 per gallon, down 12 cents from last week. This current price represents a substantial decrease from last month, dropping 43 cents, and showing a 38-cent dip from the same period in the previous year.
For Michiganders with vehicles sporting a 15-gallon tank, the drop in fuel costs translates to a savings of about $17 compared to last year's peak prices, with a full tank averaging $40. In Metro Detroit, drivers are seeing prices around $2.80 per gallon, marginally less than last week's average, and noticeably below the figure from the same time last year, WXYZ reports.
The state's most expensive gas is found in Ann Arbor at $2.87 per gallon, while the least pricey fuel is being sold in Traverse City at $2.54 per gallon, as per the reports gathered from the different regions. Areas like Flint and Marquette are also joining the roster of cities with the least expensive gas, priced at $2.60 and $2.64, respectively.
In a broader context, the declining gas prices are attributed to a combination of increased oil production from the U.S., Canada, and OPEC+ countries, alongside high refinery output. "For a fourth straight week, the national average price of gasoline has declined, as conditions remain ripe for some of the lowest seasonal gas prices in five years," Patrick De Haan, head of petroleum analysis at GasBuddy, described the market dynamics in a release cited by The Detroit News. Diesel prices have seen a decline, though inventories remain tight, keeping the national average higher than a year ago.
Travelers gearing up for the holiday rush from Dec. 20 through Jan. 1 can expect these lower gas prices to persist, making road trips less burdensome on wallets compared to last Christmas, when Michigan's average was pegged at $3.06. With nearly 3.5 million of the anticipated 4 million Michigan travelers projected to hit the roads, the timing of this downturn in fuel costs seems fortuitous. The national average for gasoline currently stands at $2.86, just a notch above Michigan's price floor.
