Michigan Gas Prices Are Expected To Surge This Week

Michiganders might see gasoline prices throughout their state jump by as much as 50 cents to start the week. This means pump prices will be ranging from $2.79 to $2.85 per gallon. The average price of a gallon of gas in Detroit on Monday was $2.67, according to GasBuddy.

The higher prices are expected to last only a day or two before falling again, however.

This up and down swing is part of a pricing cycle that’s become “very predictable” in Michigan and neighboring states like Ohio and Indiana, said Patrick DeHaan, head of petroleum analysis at GasBuddy.

Based in Boston, GasBuddy is a tech company operating apps and websites that find real-time fuel prices at more than 140,000 gas stations in the United States, Canada and Australia. It’s been in business since 2000.

DeHaan said prices have fallen steadily for the past two weeks to as low as $2.20 per gallon. This means they’re due to increase.

“Usually when we get in that type of situation, that is what triggers a price hike,” said DeHaan. “We are starting to see them go up (to) $2.79 or $2.85 (per gallon).”

Gas prices typically decline for seven to 10 days as stations under price each other until prices break even. There are times the competition gets so fierce, some gas stations slash prices by as much as 20 cents per gallon.

“That’s when … some stations will raise their price to a point where … if undercutting hadn’t occurred, they would normally be selling at,” said DeHaan.

The higher price should hold for about a day before falling by 1 to 3 cents each day, according to DeHaan.

AAA Michigan, which surveys daily fuel prices at 2,800 gas stations across the state, said gas prices have fallen some 12 cents per gallon in the last week. Gasoline prices are now 28 cents cheaper compared to last month.

AAA Michigan also said average gas prices statewide have dropped some 12 cents from a week ago to about $2.63 per gallon. It said the average price for self-serve regular unleaded is about 41 cents less than a year ago since higher gasoline stock levels have compensated for higher demand.

AAA says the Michigan’s highest average was in Marquette at $2.74 per gallon. The lowest price was in the Grand Rapids area at $2.49 per gallon. Prices in the Detroit area were about $2.71 per gallon, down about 6 cents from a week ago.