UPDATE: Gas prices in Michigan have surged 29 cents in just days, reaching an average of $3.08 per gallon, after recently dropping below $3. This sudden spike is attributed to a refinery outage at the BP plant in Whiting, Indiana, which temporarily disrupted fuel production.
Motorists across the state are feeling the pinch at the pump, with many reporting prices that seem to have rebounded almost overnight. According to AAA, this new average on October 26 marks an increase of 2 cents compared to last month and is 5 cents lower than the same time last year. Adrienne Woodland, spokeswoman for the auto club, stated, “Motorists across Michigan are seeing much higher prices at the pump.”
The refinery outage, which was caused by a fire that led to the evacuation of workers, has now been resolved, and operations have resumed as of Friday, following power restoration. This plant, the largest in the U.S. Midwest, produces a variety of fuels essential for the region. However, the recent jump in prices may be more of a short-term spike rather than a sustained trend.
In terms of local prices, Lansing currently has the highest average at $3.15 a gallon, followed closely by Ann Arbor and Saginaw at $3.13. On the other hand, Traverse City boasts the cheapest gas prices at $2.86, with metro Detroit averaging $3.00.
Nationwide gasoline demand remains stable at 8.45 million barrels per day, but supply has decreased to 216.7 million barrels from 218.8 million. The national average price for gasoline stands at $3.05 per gallon, according to AAA.
This fluctuation in gas prices comes as crude oil prices also rise, with West Texas Intermediate trading above $61 a barrel. Secretary of the Treasury Scott Bessent highlighted the decline in gasoline prices during a recent appearance on NBC’s “Meet the Press,” linking it to broader economic trends.
As prices at the pump continue to fluctuate, consumers are advised to stay vigilant and monitor local gas prices closely. With the Federal Reserve set to meet later this week, analysts are watching to see if interest rates will be adjusted in response to the latest inflation data, which rose 3% last month, lower than anticipated.
Stay tuned for more updates as the situation develops and impacts consumers across Michigan. For further details, contact Frank Witsil at 313-222-5022 or [email protected].
