As Michigan residents gear up for the Christmas season and one of the busiest travel weeks of the year, they are greeted with a pleasant surprise: gas prices have dropped to a new low for 2023, now averaging below $3 per gallon.
According to the latest data from AAA, the average price for regular unleaded gasoline stands at $2.96 a gallon, marking a significant decline from previous rates. This figure is 15 cents lower than last week, 35 cents less than a month ago, and 12 cents cheaper than this time last year. The decrease in prices means that filling an average 15-gallon gas tank now costs about $44, easing the financial burden on millions of travelers.
This year, over 3.3 million Michigan residents are expected to travel by road to their holiday destinations, as reported by AAA. This number is projected to be the second highest on record, only surpassed by 2019.
In contrast, air travel faces uncertainty, with experts cautioning about potential disruptions. Memories of last year’s chaos, where airlines canceled thousands of flights leaving millions stranded, are still fresh in the minds of many.
Regionally, gas prices vary across Michigan. Metro Detroit’s average price is currently $2.97 a gallon, slightly higher than the state average but still 12 cents lower than last week. The highest prices are found in Marquette at $3.18, Jackson at $3.11, and Ann Arbor at $3.04. On the other hand, the lowest prices are in Traverse City at $2.87, Benton Harbor at $2.88, and Flint at $2.89.
Notably, the Energy Information Administration reports that gas demand has risen from 8.47 to 8.86 million barrels a day. Despite the increased demand, which typically leads to higher prices, the cost of gas has been kept in check by lower oil prices. Last week, West Texas Intermediate crude oil went up by 86 cents, settling at $69.47. This increase followed the Federal Reserve’s announcement of maintaining steady interest rates through the year’s end and potential rate reductions in 2024.
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