GRAND RAPIDS, Mich. (WOOD) — Gas prices in Michigan are at their lowest level in more than a decade, GasBuddy.com says — and they could keep dropping.
Late Monday afternoon, Michigan’s average price for a gallon of regular unleaded gasoline was about $1.50 and falling, according to GasBuddy. Grand Rapids’ average was about $1.48.
Gas prices in our state haven’t been this low since Dec. 29, 2003, according to a tweet by GasBuddy senior petroleum analyst Patrick DeHaan.
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Michigan ranked sixth in the nation for the cheapest average, he added.
The national average was about $1.73 and falling. The price of crude oil continued its tumble, coming in at $29.92 per barrel around 2 p.m.
It’s a matter of a lot of supply and “weak” demand, DeHaan explained.
“There are certainly a lot of factors,” contributing to the low prices, he told 24 Hour News 8 in a Monday afternoon Skype interview. “While crude oil supplies are through the roof, the other thing is that the region’s refineries have been really ramping up the production of gasoline. Across the country, gasoline inventories are at their … highest seasonal levels ever and in the Great Lakes, we’re looking at some of the highest levels ever on record.”
And it could get better:
“The wholesale price of gasoline today declined another 15 cents a gallon and that’s going to give some stations in the Midwest the possibility to see 99-cent gas,” DeHaan said.
He said that would likely happen first in “competitive” areas like Toledo, Ohio and perhaps Sparta, Mich.
DeHaan said gas prices tend to start to increase in March as refiners switch from winter to summer blends Still, he expected gas prices to remain below $3 per gallon this summer.
“We might not even hit $2.75 a gallon,” he said.