Michigan drivers should fill up their tanks before Monday, a GasBuddy petroleum analyst warned, before prices start increasing again.
The average price of regular unleaded gasoline in Michigan has been declining since hitting $4.87 a gallon on May 2, according to AAA. In some places, the price exceeded $5.
The price was $4.74 a gallon on Saturday, May 9, according to AAA.
The price had soared in late April and early May more than 30 cents a gallon because the price of oil spiked due to declining supplies tied to Iran’s closing of the Strait of Hormuz, a critical oil supply route. The situation was also exacerbated because the Midwest’s largest oil refinery in Indiana was shut down for a flaring issue, and two Illinois refineries were closed for maintenance.
The refineries began to come back online and prices started declining. The Amoco station on Woodward and Greenleaf in Royal Oak had regular unleaded hit $4.74 a gallon on May 1, but had declined to $4.40 a gallon by Saturday, May 9.
But new refinery issues are threatening to cause another price hike, said Patrick De Haan, the petroleum analyst with GasBuddy, the Dallas-based technology and fuel tracking company.
“We are seeing the national average for gasoline and diesel prices drift lower so far this weekend, but we WILL jolt higher on Monday,” De Haan wrote on X on Saturday, noting it had hit $4.55 a gallon by GasBuddy’s calculations. “This is the calm before the storm.”
There was an explosion at the Chalmette, Louisiana, refinery on Friday. There are other signs of refinery issues, De Haan added.
“ALERT- Great Lakes refining issues now touching gasoline – not nearly as much as diesel but Sunday will be an easy call for the day to fill up – unless stations pull a very rare Saturday hike,” De Haan wrote Friday on X. “Gas prices in MI, IN, OH, IL, WI could cycle on Monday to previous highs.”
Michigan is known for price cycling, he has said previously. It is a practice where gas stations repeatedly lower prices to compete with each other before suddenly raising them again.
This article originally appeared on The Detroit News: Michigan drivers should fill up gas tank now, expert says. Here’s why
Reporting by Richard Burr, The Detroit News / The Detroit News
USA TODAY Network via Reuters Connect
