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AAA: Gas prices hit a new record high

The Michigan state average spikes 28 cents from a week ago
The average price for a gallon of gas has risen again after a brief dip, AAA reports.
The average price for a gallon of gas has risen again after a brief dip, AAA reports.(MGN)
Published: May. 9, 2022 at 10:58 AM EDT
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DEARBORN, Mich. (WLUC) - Gas prices in Michigan soared 28 cents, setting a new record high. Michigan drivers are now paying an average of $4.32 per gallon for regular unleaded.

This price is 35 cents more than this time last month and $1.24 more than this time last year.

Motorists are paying an average of $64 for a full 15-gallon tank of gasoline; an increase of about $13 from when prices were their highest last November.

According to new data from the Energy Information Administration, total domestic gasoline stocks decreased by 2.2 million bbl to 228.6 million bbl last week. However, gasoline demand increased slightly from 8.74 million b/d to 8.86 million b/d. Increasing gas demand and rising oil prices have pushed pump prices higher.

At the close of Wednesday’s formal trading session, WTI increased by $5.40 to settle at $107.81. Crude prices rose after the European Union announced a proposal to ban Russian oil imports within six months, while refined product imports would be prohibited by the end of 2022. It’s not clear if the plan will be approved as some members of the 27-nation block, such as Slovakia, have stated they will seek exemptions because they need more time to find alternatives to Russian oil. However, given that global crude supply remains tight, crude prices will likely remain volatile amid the news that supply could get tighter if the ban is implemented.

“Tight gasoline stocks in the Midwest, coupled with rising demand and high crude oil prices sent Michigan gas prices soaring to a new record high,” said Adrienne Woodland, spokesperson, AAA-The Auto Club Group. “Pump prices will likely face upward pressure as oil prices remain above $105 per barrel.”

Compared to last week, Metro Detroit’s average daily gas price increased, setting a new record high. Metro Detroit’s current average is $4.30 per gallon, about 24 cents more than last week’s average and $1.34 more than this same time last year.

The most expensive gas price averages in the state are in: Marquette ($4.39), Lansing ($4.35), Saginaw ($4.35)

The least expensive gas price averages in the state are in: Traverse City ($4.26), Ann Arbor ($4.30), Metro Detroit ($4.30)

Daily national, state, and metro gas price averages can be found at Gasprices.aaa.com.

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