Michigan gas price average drops, but analyst warns: Increases expected 'down the road'

Frank Witsil
Detroit Free Press

Michigan’s average gas prices fell 8 cents Monday, but motorists are still paying $3.39 a gallon, AAA auto club said.

That's a little relief after weeks of gradual increases as a result of a sudden and sharp drop in oil prices, but, one analyst said: Don't expect it to last.

"For now, motorists should enjoy the decline," said Patrick De Haan, head of petroleum analysis at GasBuddy, noting that the national average price of gasoline, $3.44 a gallon, declined for the first time in 2023. "But be wary, as we’re likely to eventually see increases again down the road."In addition, he said, prices tend to fall in February, as a result of seasonally weak demand.

There's some good news for diesel customers: More — and more significant — price declines are likely in the weeks ahead as imports of distillate have accelerated, leading to a sell-off. And, with warmer weather ahead, demand may continue to struggle as well.

The price of gas in Michigan is still 8 cents more than this time last month and 2 cents more than this time last year. A full, 15-gallon tank is about $50.

"Michigan motorists are seeing some slight relief at the pump," Adrienne Woodland, a AAA spokeswoman said, adding that drivers could continue to see pump prices drift lower through this week, but with a caveat: "if demand does not spike."

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West Texas Intermediate oil decreased by $2.46 a barrel to settle at $76.41. Crude prices fell after the U.S. Federal Reserve increased interest rates and signaled that more increases are likely.

Metro Detroit’s average also fell to $3.45 a gallon, about 5 cents less than last week’s average but it is still 8 cents more than this same time last year, and one of the most expensive city averages in the state, followed by Ann Arbor, $3.42, and Jackson, $3.41,

The least expensive averages: Benton Harbor, $3.26; Grand Rapids, $3.27 and Marquette, $3.33.

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.