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Michigan gas prices drop 12 cents in a week, but diesel costs surge

Gas prices in Michigan are down 12 cents from a week ago, AAA-The Auto Club group said in its latest weekly report.

Michigan drivers are now paying an average of $4.03 per gallon for regular unleaded. This price is 17 cents less than this time last month and 85 cents more than this time last year. At that price point, 15 gallons of gas would cost about $60.

The most expensive gas price averages this week in Michigan are in Ann Arbor ($4.12), Metro Detroit ($4.11) and Marquette ($4.04).

The least expensive gas price averages this week in Michigan are in Grand Rapids ($3.89), Flint ($3.91) and Saginaw ($3.96).

While the Labor Day travel weekend saw relatively high prices for the end of summer, fuel experts are also closely watching diesel prices, which are surging over supply disruptions. 

"Average gasoline prices rose in nearly three out of five states over the last week, while diesel surged in every state - with some climbing nearly 50 cents per gallon in just seven days," said Patrick De Haan, head of petroleum analysis at GasBuddy.   

Over the weekend, GasBuddy says the national average diesel fuel price hit a new record of $5.87 a gallon. Michigan's average diesel cost, as calculated by AAA , was $5.89 on Tuesday. Diesel fuel is used by commercial trucks and other large vehicles, and its cost could ripple into higher transportation costs for consumer goods.

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