Michigan – As Michigan residents prepare to ring in the new year, they have something additional to celebrate: falling gas prices. The average price for a gallon of regular unleaded fuel in Michigan has decreased to $3.03, a 7-cent decline over the past week, according to the most recent figures from AAA-Auto Club Group.
With gas costing 8 cents less per gallon than last month, Michigan drivers will be finishing the year on a positive note based on current prices. Still, it is 11 cents more than the average price at the same period last year. Drivers are paying somewhat more than they did at the end of 2023 due to this seasonal fluctuation, but they are relieved from the top prices of last summer.
“Michigan drivers are seeing lower pump prices heading into the new year,” Adrienne Woodland, a spokeswoman for the auto club, said. “If demand drops, alongside increasing supply, gas prices could continue to fall.”
Reporting a drop in U.S. crude oil inventory by 4.2 million barrels last week, the Energy Information Administration (EIA) shed light on the larger energy market. Changing gas prices have been influenced in part by this decline in crude supplies, which for December currently represent roughly 5% below the five-year average. Concurrent with this, domestic gasoline reserves increased slightly to 223.7 million barrels while daily gasoline production remained constant at 9.9 million barrels.
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The effects of these developments differ around the state. With the average gallon costing $3.04—9 cents more than last year at this time but 2 cents less than only a week ago— Metro Detroit has seen somewhat higher prices.
To guarantee a wide and accurate representation of current trends, AAA compiles its data from a thorough study of credit card swipes and direct feeds at over 4,200 gas stations throughout Michigan and 130,000 nationally.
Regional differences are notable. With both Ann Arbor and Jackson at $3.05 per gallon, average prices are higher there. Traverse City, Benton Harbor, and Marquette, where gallons cost $2.88, $2.94, and $2.95 respectively, have the lowest costs. Metro Detroit also has some of the lowest pump rates; a Shell station in Clinton Township only $2.80 per gallon, the lowest in the region.
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Michigan drivers have a smaller load on their wallets as they move into 2025 as they fill their tanks with an average 15-gallon fill-up costing roughly $45, down $13 from August’s record rates.