AAA Michigan: Statewide average gas prices increase by nine cents

Henrietta Strickland
April 16, 2018

The average price of a gallon of gas in MI jumped nine cents last week but drivers in the Lansing area saw a much higher spike in prices. Prices are about 28 cents more than this same time a year ago.

The EIA is projecting average monthly gas prices will top out at $2.79/gal in May before falling to $2.65/gal in September. For all of 2018, EIA expects USA regular gasoline retail prices to average $2.64 per gallon. Gasoline prices are made up of four main components: crude oil prices, wholesale margins, retail distribution costs, and taxes. Although crude oil production and inventory quantities in the US rose this week, the possible impact on supply from Middle East tension continues to loom. The EIA is forecasting Brent crude oil to average $63/b this summer, or about $12/b ($0.29/gal) higher than last summer.

The auto club traces the increases to higher crude oil prices and tension in the Middle East, and predicts prices will continue to rise due to higher demand during the summer driving season. Prices are expected to inch slightly higher as the May 1 deadline to switch over to summer-blend gasoline at the pumps approaches.

Including the change in gas prices in Chattanooga during the past week, prices on Sunday were 32.6 cents per gallon higher than the same day one year ago and are 20.7 cents per gallon higher than a month ago. Metro Detroit's average is about 26 cents more than this same time a year ago.

Other reports by Click Lancashire

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