July 02–Gas prices are on the rise again after consistently dropping for nearly a month as AAA Michigan reports gas prices are up to about $2.99 per gallon as of Monday morning, July 2.
This puts prices in Michigan nearly 15 cents higher than the national average of $2.85 per gallon, and represents about a 70 cent increase from this time last year. The Dearborn-based auto club surveys 2,800 gas stations in Michigan each week.
Michigan has the 14th most expensive gas in the nation, and the recent spike represents the second biggest change in the U.S. week-over-week, AAA reports.
This comes after the average cost for a gallon of self-serve gasoline had at least slightly dropped for four consecutive weeks. With Fourth of July falling in the middle of the week on Wednesday, the millions of Michiganders hitting the road for holiday travel could spend a little more than expected at this time last week.
It shouldn’t be much of a surprise to those following the trends as Patrick DeHaan, head of petroleum analysis at GasBuddy, has been warning Michiganders of a “less rosy” future for a couple of weeks. DeHaan originally expected prices in Michigan to jump to the $3.09 to $3.19 range last week, but we still haven’t experienced that large of spike just yet.
The analyst has said that an increase is likely thanks to OPEC agreeing to increase oil production by “only” 600,000 barrels each day, which was “well short of expectation amidst a hot global and U.S. economy. AAA reports in a news release that oil prices hit a “multi-year” high last week, and that “motorists could see a spike in gas prices later this summer.”
“The decision may lead to an abrupt end in recent gas price declines or may slow it down, just as gasoline prices had been catching up to the prior slump in crude oil,” DeHaan said in a release.
“I’m optimistic that we can avoid a $3 per gallon national average, but if gas prices were to mirror the gains in oil prices, a 5% gain would theoretically put us back at nearly $2.99 per gallon, not what you like to see any time, much less prior to the summer’s most popular holiday.”
AAA Michigan estimates that as many as 1.6 million Michiganders could travel for traveling over the course of the Fourth of the July. This would represent a year-over-year increase of 5.5 percent, and would mark the highest travel volume in the state since it began tracking the info 18 years ago.
The auto club expects 1.4 million travelers to drive, and another 71,000 to fly.
See below for a rundown of gas prices across the state:
–Ann Arbor: $3.06
–Benton Harbor: $2.97
–Metro Detroit: $3
–Grand Rapids-Muskegon-Holland: $2.97
–Lansing-East Lansing: $2.99
–Saginaw-Bay City-Midland: $2.97
–Traverse City: $2.91
As of Monday morning, GasBuddy reports the cheapest gas in the state can be found in Commerce Township at $2.54, in Port Huron at $2.59, and in Grand Haven at a couple of locations of $2.60 per gallon.
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