January 08, 2017|
AAA MICHIGAN REPORTS: GAS PRICES RISE FIFTEEN CENTS
Dearborn, Michigan (January 8, 2017) — AAA Michigan reports that the statewide average daily gas price increased about 15 cents. Michigan’s current statewide average is about $2.51 per gallon, about 15 cents more than last week’s average and about 59 cents more than this same time last year.
Metro Detroit’s average daily gas price increased about 12 cents. Metro Detroit’s current average is about $2.51 per gallon, about 12 cents more than last week’s average and about 61 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 Flint area, where it’s about $2.48 a gallon. The highest average price can be found in the Ann Arbor area where it’s about $2.53 a gallon.
According to the latest reports from AAA:
- Michigan is in the top ten, ranking 9th in the nation for most expensive average daily gas price.
Rank State Price
1 Hawaii $3.033
2 California $2.800
3 Alaska $2.737
4 Washington $2.725
5 Pennsylvania $2.648
6 District of Columbia $2.594
7 Oregon $2.549
8 New York $2.544
9 Michigan $2.514
10 Illinois $2.491
- National gas prices have continued to increase since last fall when OPEC announced an agreement to cut oil production starting in 2017.
- Traditionally this time of year gives way to lower gas prices as a result of cheaper to produce winter-blend fuel and less demand, but OPEC’s production agreement has rallied the market and continues to pressure prices higher.
Global Market Dynamics
- Following OPEC’s production agreement last year, markets continue to react to the news and oil is still selling for over $50 a barrel.
- This agreement called for a production cut of 1.8 million barrels per day by the cartel and non-OPEC members and is slated to last six months.
- OPEC plans to meet again on May 25, 2017, and will discuss the possibility of an extension.
- The strength of the agreement and its impact on the market going forward will depend on whether or not participating countries follow through and implement the productions cuts.
- Another factor that may impact OPEC’s efforts to rebalance global oil supply is the recent uptick of oil coming out of Iran.
- The oil producing country was exempt from the OPEC agreement, but their increased sales may give them an opportunity to capture more market share.
- Traders will continue to watch how OPEC and non-OPEC members move forward with terms of the agreement and any impact Iran’s oil sales have on the market.
Regular Unleaded Gas
Current and Past Price Averages
|Sunday ||Week Ago ||Year Ago |
|National ||2.369 ||2.336 ||1.988 |
|Michigan ||2.514 ||2.364 ||1.919 |
|Ann Arbor ||2.536 ||2.396 ||1.931 |
|Benton Harbor ||2.493 ||2.335 ||1.906 |
|Detroit ||2.514 ||2.394 ||1.898 |
|Flint ||2.481 ||2.298 ||1.921 |
|Grand Rapids/Muskegon/Holland ||2.522 ||2.309 ||1.943 |
|Jackson ||2.528 ||2.369 ||1.940 |
|Lansing/E. Lansing ||2.507 ||2.287 ||1.860 |
|Marquette ||2.523 ||2.451 ||1.943 |
|Saginaw/Bay City/Midland ||2.534 ||2.346 ||1.929 |
|Traverse City ||2.484 ||2.372 ||1.958 |
| || || || || |
AAA surveys 2,800 Michigan gas stations daily.
The next Gas Price Primer will be emailed on Sunday, January 15, 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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