Another record high for gasoline | the BIZ
DEARBORN – Gasoline prices in Michigan set a new record high for the second straight week.
The average price of a gallon of regular unleaded increased 5 cents to $4.38 on Monday, according to the weekly report from AAA – The Auto Club Group. It’s the fourth straight weekly increase.
The price of $4.38 is 48 cents more than this time in April and $1.43 more than the $2.95 average price paid in May 2021.
The new state average means Michigan motorists are paying an average of $65 for a full 15-gallon fill-up. The fill-up price is about $14 more than in November 2021.
Total domestic gasoline stocks decreased from 3.6 million barrels to 225 million barrels, according to data from the Energy Information Administration. Gasoline demand also decreased slightly from 8.86 million to 8.7 million barrels per day.
Lower demand typically puts downward pressure on prices at the pump, but crude prices remain volatile.
West Texas Intermediate increased the price of crude oil from $5.95 to $105.71 at the close of Wednesday’s formal trading session. This was after the price of crude oil slid below $100 per barrel earlier in the week “due to global market concern that crude demand will suffer as COVID lockdowns in China remain in place,” according to the release.
But crude prices reversed course and increased “over growing market worries that Ukrainian and European Union actions against Russian oil-and-natural gas companies could spark retaliation by Russia that leads to more market disruption and uncertainty,” according to the release.
The domestic crude supply increased by 8.5 million barrels to 424.2 million and the current level is approximately 12.5 percent lower than during the first week of May 2021.
Traverse City continued to post the least expensive gasoline price averages in the state at $4.21. The other least expensive averages were reported in Saginaw ($4.31) and Grand Rapids ($4.32). The most expensive gas price averages were reported in Marquette ($4.49), metro Detroit ($4.44) and Ann Arbor ($4.41).
The national gas price average jumped 15 cents from last week to $4.47 a gallon. The national average for a gallon of regular unleaded last month was $4.07. US motorists paid an average of $3.04 a gallon in May 2021.
AAA offered some tips to save on gasoline, including:
- Combine errands to limit driving time.
- Shop for the best gas prices.
- Consider paying cash, because some retailers charge extra per gallon for customers paying with a credit card.
- Remove excess weight in the vehicle.
- Drive conservatively because aggressive acceleration and speeding reduces fuel economy.
- Enroll in savings programs.
Daily state and national gas price averages can be found at Gasprices.aaa.com or with the free AAA Mobile app.