Gas prices in Michigan have ticked up by three cents, according to the latest weekly snapshot from AAA. The statewide average price for regular unleaded gasoline is now $2.85 per gallon, which may not seem like a lot but can still make drivers pause, especially with holiday travel on the horizon and budgets already stretched thin.
While some cities are paying more than others, the regional map shows that metro areas like Ann Arbor and Lansing are among the most expensive, with prices ranging from $2.94 to $2.87 per gallon. On the other hand, places like Marquette and Traverse City have some of the lowest prices, with averages ranging from $2.66 to $2.68 per gallon.
So why did a small increase in demand and tightening crude inventories contribute to this slight rise? AAA points to several national indicators that help explain the trend. With gasoline demand increasing week over week, fueled by holiday travel, it's no surprise that prices are creeping up. At the same time, total domestic gasoline supply rose, but production decreased to an average of 9.6 million barrels per day.
The Energy Information Administration also reported crude inventories fell by 1.8 million barrels, leaving them about 4 percent below the five-year average for this time of year. While oil prices do not translate perfectly into what you pay at the pump, these trends can shape what refiners and wholesalers pay, which ultimately affects retail prices.
As Michigan navigates a new fuel tax structure that took effect on January 1, 2026, drivers are also navigating a policy change. The state is changing how fuel is taxed, swapping a sales tax component for a more predictable per-gallon structure. This is not a price increase in itself, but rather a simplification of the current system.
When people see prices move, it's usually the market moving first, not a new law suddenly rewriting every sign overnight. Even when prices are relatively calm, there are still several factors to watch for that can shape what happens next. Demand patterns, crude and inventories, and regional spread within Michigan all play a role in determining where gas prices go.
Demand, if travel patterns stay elevated even after the holidays, can remain firmer than expected, especially when weather conditions keep driving habits steady. Crude and inventories are also key. A crude inventory draw and oil settling near the upper end of recent weeks can add upward pressure on prices. Conversely, a rebuild in inventories can help keep prices contained.
Finally, the regional spread within Michigan matters. The gap between places like Ann Arbor and Marquette in AAA's metro averages is not trivial. When statewide prices feel stable, shopping around within a metro area or timing a fill-up before a longer drive can make all the difference.
For now, though, it seems that gas prices are ticking up slightly due to increased demand and tighter inventories. While a three-cent increase might seem small, it's still worth keeping an eye on. With holiday travel on the horizon and budgets already stretched thin, every few cents counts.
While some cities are paying more than others, the regional map shows that metro areas like Ann Arbor and Lansing are among the most expensive, with prices ranging from $2.94 to $2.87 per gallon. On the other hand, places like Marquette and Traverse City have some of the lowest prices, with averages ranging from $2.66 to $2.68 per gallon.
So why did a small increase in demand and tightening crude inventories contribute to this slight rise? AAA points to several national indicators that help explain the trend. With gasoline demand increasing week over week, fueled by holiday travel, it's no surprise that prices are creeping up. At the same time, total domestic gasoline supply rose, but production decreased to an average of 9.6 million barrels per day.
The Energy Information Administration also reported crude inventories fell by 1.8 million barrels, leaving them about 4 percent below the five-year average for this time of year. While oil prices do not translate perfectly into what you pay at the pump, these trends can shape what refiners and wholesalers pay, which ultimately affects retail prices.
As Michigan navigates a new fuel tax structure that took effect on January 1, 2026, drivers are also navigating a policy change. The state is changing how fuel is taxed, swapping a sales tax component for a more predictable per-gallon structure. This is not a price increase in itself, but rather a simplification of the current system.
When people see prices move, it's usually the market moving first, not a new law suddenly rewriting every sign overnight. Even when prices are relatively calm, there are still several factors to watch for that can shape what happens next. Demand patterns, crude and inventories, and regional spread within Michigan all play a role in determining where gas prices go.
Demand, if travel patterns stay elevated even after the holidays, can remain firmer than expected, especially when weather conditions keep driving habits steady. Crude and inventories are also key. A crude inventory draw and oil settling near the upper end of recent weeks can add upward pressure on prices. Conversely, a rebuild in inventories can help keep prices contained.
Finally, the regional spread within Michigan matters. The gap between places like Ann Arbor and Marquette in AAA's metro averages is not trivial. When statewide prices feel stable, shopping around within a metro area or timing a fill-up before a longer drive can make all the difference.
For now, though, it seems that gas prices are ticking up slightly due to increased demand and tighter inventories. While a three-cent increase might seem small, it's still worth keeping an eye on. With holiday travel on the horizon and budgets already stretched thin, every few cents counts.
I'm really not happy about this 3 cent price hike in Michigan. $2.85 is already kinda steep, and now we gotta pay more? 
I get that there's more demand due to holiday travel, but can't they just do something to increase production or import more oil instead of raising prices even further? 
And what's up with the regional differences in prices? Like, Ann Arbor is $0.07 more than Lansing? That's crazy! 
I'm starting to think that gas price changes are a lot like airline ticket prices - you have no idea how they're calculating it unless you're a super fancy data analyst 
. i mean we're not gonna break the bank or anything over 3 cents 
. and honestly, it's kinda cool that michigan is getting all this new info on how fuel is taxed now 
. like, who doesn't love a good system overhaul, right? 
and omg, have you seen those regional spreads? ann arbor to marquette is like 50 cents difference 
I'm sure many people are already stressing about their budgets, so every little bit counts. The thing is, I think the explanation about demand and inventories makes sense, but it's also kinda cool how the state just changed its fuel tax structure... like what even is going on with that? 
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AAA says 3-cent increase in gas prices? 
It's not like it's a lot, but every little bit counts when you're already stretched thin 
️ Holiday travel = tighter inventories = higher prices 
. It seems like Michigan is one of the worst places to be right now. A three-cent increase might not seem like a lot, but trust me, it adds up quickly 
I mean, I'm all for supporting local businesses, but come on! You can't just raise prices because of a holiday weekend 
.
. It's just another way for the government to mess with our wallets 
Yeah, sure, that's what they said last year too 
. Mark my words, I'll be watching this one closely 
.
and honestly i think michigan needs to rethink that new fuel tax thingy 
. maybe instead of just complaining about gas prices, we can start advocating for change and supporting initiatives that promote affordable transportation options 
. I'd rather see ppl focus on planning ahead and timing their fill-ups instead of freakin out over a few cents