Michigan gas prices jumped 84 cents in one week, hitting $4.86 on Friday, AAA data shows
Michigan's average gas prices have spiked another few dimes, with AAA reporting an average cost of $4.86 across the state on Friday morning, up 28 cents.
It's the latest in a noticeable jump in retail prices this week for the regular unleaded fuel used by most passenger vehicles. And while the national gas prices have increased this week, Michigan's prices spiked even higher, with authorities citing an unrelated refinery issue in Indiana.
It's basically a perfect storm of circumstances, creating what Patrick De Haan, head of petroleum analysis for GasBuddy, said Friday "one of the fastest price run-ups in years."
How fast have gas prices gone up?
AAA-The Auto Club Group routinely reports on gas price trends on Mondays. The auto club also maintains a database where day-to-day price reports are tracked.
The price changes that AAA displayed this week for Michigan have been anything but routine – more than reversing a short-lived price drop seen in mid-April.
Those price reports for Michigan this week were:
- $4.02 on Monday. At that price point, a 15-gallon tank of gas costs about $60.
- $4.18 on Tuesday.
- $4.25 on Wednesday.
- $4.58 on Thursday.
- $4.86 on Friday. At that price point, a 15-gallon tank of gas costs about $73.
The latest gas price surge in the Midwest also sets Michigan way ahead of the national average in gas prices. Monday's average pricing of $4.02 in Michigan was nine cents below the national average of $4.11 that date. To compare, Friday's pricing of $4.86 in Michigan is 47 cents above the national average of $4.39 that date.
And that's just the regular gas pricing – premium and diesel fuel costs are typically higher.
While the latest price point is a significant change for Michigan customers, who became accustomed to a cost of around $3 a gallon during the past year; there are locations where gas is currently even more expensive. The Chicago area is seeing price averages of $5.05 a gallon; part of California is seeing price averages of $6.45 a gallon.
Why is gas so expensive in Michigan?
There are two factors feeding into the Midwest pricing structure.
As a starting point, AAA says national gas prices are now the highest they've been since July 2022. Oil prices have surged to over $100 a barrel, with no indication as to when the Strait of Hormuz will reopen to regular shipping traffic levels. President Trump says gas prices "will go down rapidly" when the Iran war ends.
The Midwest states, including Michigan, are further aggravated by production disruptions at the BP Whiting refinery in Indiana, De Haan said. This is one of the largest refineries in the U.S., and wholesale price spikes related to supply issues translate fast to retail price spikes.
"The Midwest is Ground Zero," De Haan said. "In many of these states, prices are now at their highest levels since 2022 – and in some cases, approaching or threatening all-time records."
