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Michigan gas prices drop 15 cents a gallon ahead of Memorial Day travel surge

Michigan gas prices drop 15 cents a gallon ahead of Memorial Day travel surge

Yahoo12-05-2025

In the ups and downs of Michigan gas prices, this week they were down 15 cents a gallon, offering some much-desired relief at the pump for drivers concerned about inflation and recession warnings.
"Michigan drivers are seeing lower prices at the pump this week," said Adrienne Woodland, a spokeswoman for the Auto Club. "If demand stays low, alongside increasing gasoline stocks, motorists could continue to see gas prices decline."
Michiganders were paying an average of $3.06 a gallon on Sunday for regular unleaded, according to AAA. That was 6 cents a gallon less than a month ago and 59 cents less than a year ago.
In Michigan, the cities with the least expensive gas price averages were in Traverse City, $2.94 a gallon; Jackson, $2.95 and Flint, $2.98; and the most, in metro Detroit, $3.09; Marquette, $3.10, and Ann Arbor, $3.11.
The lower gas prices track with lower crude oil prices.
However, in terms of economic benefits, the two may offset each other.
Lower gas prices mean people are saving a few dollars and likely pay slightly less in the transportation costs of goods. The low oil prices will mean oil producers likely will be curbing spending and hiring, which would have a negative ripple effect on the economy.
What's more, gas prices also are nowhere near President Donald Trump's repeated, misleading claims of $1.98 a gallon — which is closer to what could be considered a wholesale price, a portion of the retail price — not what Americans are paying at the pump.
More: Gas in Michigan jumps 17 cents a gallon in a week, despite falling oil prices
Whether gas prices will continue to decline or edge up closer to Memorial Day likely depends on oil prices and demand.
Gasoline demand had decreased from 9.09 million barrels a day to 8.71 million barrels a day. Total domestic gasoline supply slightly increased from 225.5 million barrels to 225.7 million, according to the Energy Information Administration.
West Texas Intermediate, a grade of crude oil and one of the pricing benchmarks, has been trading below $60 a barrel, down from about $85 a barrel a year ago. Lower oil prices, combined with a slumping economy, often lead to reduced production.
AAA expects 1.3 million Michiganders will travel at least 50 miles from home during Memorial Day weekend, most of them by car, which would be an increase of 37,000 compared to last year — and the second highest on record.
Of those, 1.2 million will be going by car and 70,000 by plane.
Debbie Haas, a AAA vice president, said despite uncertainty, travel is a priority.
Nationally, AAA predicts more than 45 million will be traveling during the holiday weekend, which usually starts on Thursday and ends Monday, a day off from work for many.
The overwhelming majority of travelers, 39.4 million, are expected to drive.
On Sunday, the average national gas price was $3.14 a gallon.
The lowest state average for gas was $2.63 a gallon in Mississippi and the highest, $4.89 in California. However a report by a University of Southern California professor is forecasting it could reach $8 a gallon by 2026, based on the upcoming closures of regional refineries.
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.
This article originally appeared on Detroit Free Press: Michigan gas prices drop ahead of Memorial Day weekend travel surge

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