Gas prices in Michigan have fallen to their lowest level of the year, with the statewide average now at $2.73 per gallon. According to AAA, this marks a significant decrease from last year when prices were 38 cents higher, and from last month when prices were 43 cents more per gallon. The New York Mercantile Exchange attributes this decline to an increase in gasoline supply and a decrease in demand.
The most expensive gas prices in the state are found in Ann Arbor, where the average price is $2.87 per gallon. Meanwhile, Traverse City boasts the cheapest average at $2.54 per gallon. The Energy Information Administration reported that gasoline demand decreased from 8.72 million barrels per day to 8.32 million, while the total domestic gasoline supply increased from 209.9 million barrels to 214.4 million.
Patrick De Haan, head of petroleum analysis at GasBuddy, explained that the recent drop in prices is due to several factors, including BP's Whiting, Indiana refinery resuming operations after an October fire, seasonal declines in demand, and the conclusion of refinery maintenance. Additionally, OPEC has increased oil production, contributing to the lower prices.
AAA anticipates that nearly 4 million Michiganders will travel during the holiday period from December 20 to January 1, with 3.5 million expected to drive. Drivers can expect lower gas prices compared to last Christmas, when the state average was $3.06.