Michigan gasoline prices are surging − rising an average of 32 cents in just one day − in part because crude oil prices are high due to the war, but also because Midwest refineries are shut down, tightening regional supply.
In Ohio, the vice president’s home state, gas prices are getting increasingly close to surpassing an all-time high of more than $5 a gallon in 2022, which President Donald Trump repeatedly criticized.
“Every. Single. State. Has higher gas prices today compared to a week ago.” GasBuddy analyst Patrick De Haan posted on X on Thursday, April 30, and in a separate post, he wrote, “Americans will spend half a *billion* dollars more on gasoline in the next 24 hours compared to March 1.”
By De Haan’s calculation, which is slightly different from AAA’s, Michigan has had the second-biggest jump in the nation, 72 cents, exceeded only by Indiana, with 84 cents, “yes, 84 cents in a WEEK.”
Will prices beat the 2022 record?
Michigan, he added, was followed by Ohio, 60 cents; Illinois, 39 cents; and New Mexico, 37 cents. He also warned that prices in Ohio were close to hitting a new record, surpassing $5 a gallon in 2022.
Michigan’s record high was $5.22 a gallon in 2022, according to AAA.
As of Thursday, the auto club had calculated that regular unleaded in Michigan had jumped, on average, to $4.58 a gallon. Some metro Detroit stations are selling gas at nearly $5 a gallon, and one at more than $6 a gallon.
Problems at Midwest refineries
Refineries in Illinois and Indiana have been shut down. A power outage forced BP’s Whiting refinery in Indiana to go offline Sunday; it has since resumed service, which could help ease prices.
Forecasts are calling for them to go higher.
Gas prices, like everything else, fluctuate daily, going up and down. And sometimes, depending on the circumstances, they can even go up at individual stations midday.
Crude oil prices have edged up
Oil prices have been climbing as markets react to renewed geopolitical tensions. But even if the Mideast conflict with Iran were resolved soon, it’s likely that prices will remain high for longer.
Oil was trading on Thursday, April 30, at more than $100 a barrel.
When will gas prices come down
More often than not, however, prices at the pump tend to shoot up as wholesale costs spike and then take a while to recede as retailers seek to make a profit by maintaining higher margins.
The phenomenon is sometimes called “rockets and feathers.”
At the start of the week, Michigan led the nation in price increases, followed by Ohio, Wisconsin, Maine, and Iowa. Michigan’s gasoline average is 28 cents higher than the national average.
It appears increasingly unlikely, however, that the gas price increase will be temporary, with even the administration’s own energy secretary predicting this month that prices could remain elevated through 2027.
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com
This article originally appeared on Detroit Free Press: Why Michigan gas prices are high, jumping 32 cents a gallon in 1 day
Reporting by Frank Witsil, Detroit Free Press / Detroit Free Press
USA TODAY Network via Reuters Connect
