Michigan's gasoline prices hit new highs in March 2025
- Michigan's average gasoline price hit $3.17 per gallon on March 24, 2025, up 13 cents from the previous week.
- Gasoline demand in the U.S. decreased, while production rose to an average of 9.6 million barrels per day.
- This increase in gasoline prices reflects broader trends in supply and demand dynamics affecting consumers.
In Michigan, average gasoline prices have surged, setting a new high for 2025 as reported on March 24, 2025. Over the weekend, the price per gallon of regular unleaded gas peaked at $3.19 before stabilizing at $3.17 on Monday morning. This increase marks a rise of 13 cents from the previous week and reflects a 9-cent hike since last month; however, it remains 41 cents lower compared to this time last year. Motorists are now paying approximately $47 for a typical 15-gallon tank, signifying about $10 less than the highest price recorded in July 2024. The Energy Information Administration (EIA) indicates a decline in gasoline demand from 9.18 million barrels per day to 8.81 million barrels per day, highlighting possible contributing factors to pricing. Alongside the decrease in demand, the total domestic gasoline supply slipped slightly from 241.1 million barrels to 240.6 million barrels. Interestingly, gasoline production has risen, averaging 9.6 million barrels per day, striving to meet the fluctuating demand. On the trading front, the West Texas Intermediate (WTI) crude oil price experienced a slight increase, closing Wednesday's session at $67.16 a barrel following a rise of 26 cents. The EIA's report also revealed a modest increase in U.S. crude oil inventories, which grew by 1.7 million barrels, bringing the total inventory to 437.0 million barrels. This current inventory level stands about 5% below the five-year average for this time of year. Notably, Jackson records the highest gasoline prices in Michigan, averaging $3.24 per gallon, while Traverse City boasts the lowest at $2.95. The state of Michigan is grappling with the implications of these rising gasoline prices, which affect not only individual motorists' budgets but also have a broader impact on transportation costs, consumer prices, and overall economic trends in the Midwest. As prices grow due to shifting dynamics in supply and demand, understanding these trends is essential for both policymakers and consumers.