January 02, 2017|
AAA MICHIGAN REPORTS:NEW YEAR BEGINS WITH HIGHER GAS PRICES AND GAS TAXES
Dearborn, Michigan (January 2, 2017) — AAA Michigan reports that the statewide average daily gas price increased about 3 cents. Michigan’s current statewide average is about $2.42 per gallon, about 2 cents more than last week’s average and about 49 cents more than this same time last year.
Metro Detroit’s average daily gas price increased about 3 cents. Metro Detroit’s current average is about $2.44 per gallon, 3 cents more than last week’s average and about 52 cents more than this same time last year.
Of the ten Michigan metro areas surveyed by AAA for self-serve unleaded fuel prices, the lowest average price can be found in the Lansing/East Lansing area, where it’s about $2.34 a gallon. The highest average price can be found in the Marquette area where it’s about $2.47 a gallon.
According to the latest reports from AAA:
- Michigan ranks 13th in the nation for most expensive average daily gas price.
- Michigan drivers will experience higher gas taxes (+7.3 cents) in the New Year.
- This is part of the transportation funding package that was passed in 2015.
- It provides additional revenue that is needed for the state's infrastructure needs.
- Gasoline inventories in the Great Lakes region dropped nearly 1 million bbl last week according to the latest EIA report.
- The decline can likely be attributed to lingering refinery issues, and as a result, drivers in some parts of the region are paying some of the nation’s highest averages at the pump.
- Moving into 2017, retail prices will continue to hinge on the ability of cartel countries to successfully implement production cuts.
- Retail averages are likely to increase leading up to the summer driving season as seasonal refinery maintenance gets underway this spring.
Global Market Dynamics
- < >rude oil benchmarks closed out the year posting the largest annual gains since 2009.These gains can largely be attributed to the OPEC agreement, a deal brokered by OPEC and non-OPEC countries to cut crude oil production by 1.8 million barrels per day in an effort to rebalance the global oil supply.
- As 2016 came to a close, U.S. gasoline production reached a record high of 10.537 million bbl for the last week in December.
- Typically, domestic demand falls in January so higher gasoline production may lead to a stock build in the coming weeks and could have a bearish market impact on gasoline.
- In 2017, traders will continue to monitor whether participating countries adhere to the OPEC agreement and the rate at which U.S. gasoline production increases.
Regular Unleaded Gas
Current and Past Price Averages
|Monday ||Week Ago ||Year Ago |
|National ||2.342 ||2.287 ||1.994 |
|Michigan ||2.421 ||2.394 ||1.924 |
|Ann Arbor ||2.452 ||2.410 ||1.937 |
|Benton Harbor ||2.427 ||2.333 ||1.945 |
|Detroit ||2.442 ||2.403 ||1.914 |
|Flint ||2.365 ||2.353 ||1.927 |
|Grand Rapids/Muskegon/Holland ||2.390 ||2.390 ||1.924 |
|Jackson ||2.418 ||2.242 ||1.952 |
|Lansing/E. Lansing ||2.349 ||2.397 ||1.879 |
|Marquette ||2.471 ||2.407 ||1.969 |
|Saginaw/Bay City/Midland ||2.424 ||2.391 ||1.915 |
|Traverse City ||2.465 ||2.455 ||1.984 |
| || || || || |
AAA surveys 2,800 Michigan gas stations daily.
The next Gas Price Primer will be emailed on Sunday, January 8, 2017
AAA in Michigan celebrated its 100th Anniversary - A Century of Service last year and has over 1.4 million members across the state. It is part of The Auto Club Group (ACG), the second largest AAA club in North America. ACG and its affiliates provide membership, travel, insurance and financial services offerings to more than 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 56 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can find current gas prices, map a route, find discounts, book a hotel and access AAA roadside assistance with the free AAA app for iPhone, iPad and Android at AAA.com/mobile. Connect with us on Facebook and LinkedIn.
About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, travel, insurance and financial services offerings to approximately 9 million members across 11 states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with nearly 55 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.
About Auto Club Group Traffic Safety Foundation
Established by AAA – The Auto Club Group in 2010, Auto Club Group Traffic Safety Foundation, Inc. (ACGTSF) is a 501(c)(3) non-profit organization and public charity dedicated to producing a significant and continuous reduction in traffic crashes, injuries and deaths in the communities targeted by its efforts. ACGTSF provides programs, education and outreach to increase public awareness about the importance of traffic safety and improve driving behavior. ACGTSF is funded by voluntary, tax-deductible contributions from organizations and individuals who support ACGTSF’s purpose.
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