Gasoline costs still above last year’s levels as refinery issues ease
Category: Economy
As the sun rose over Michigan on September 28, 2026, motorists were greeted by a welcome sight: a drop in gasoline prices at the pump. After experiencing a sharp increase just a week prior, gas prices fell by 24 cents, averaging $4.69 per gallon. This decrease, reported by AAA-The Auto Club Group, comes as a relief but still leaves consumers grappling with costs that are significantly higher than they were a year ago.
The current price is 43 cents more than a month ago and $1.65 higher compared to this time last year. In Detroit, the average price is slightly lower at about $4.67 per gallon, down 22 cents from the previous week. For many drivers, filling up their tanks has become a costly endeavor, with a full 15-gallon tank now costing around $70—an increase of about $19 from August's high.
What led to this decrease in gas prices? According to Patrick De Haan, head of petroleum analysis at GasBuddy, a major refinery in the Great Lakes region successfully restarted operations after being offline. This development has contributed to the easing of prices across several states. "Average gasoline prices fell in slightly more than half of states over the last week, with the Great Lakes seeing the largest declines," De Haan noted.
In stark comparison, the West Coast has seen prices rise due to refinery issues there, highlighting the regional disparities in fuel pricing. The national average for gasoline stands at $4.42 per gallon, which is a 2-cent drop from the previous week. This fluctuation reflects broader trends in oil production and geopolitical factors that can influence market stability.
GasBuddy's latest reports indicate that Detroit's pump price is 51 cents higher than last month and $1.61 per gallon higher than a year ago. The cheapest gas station in Detroit was reported at $4.06, whereas the most expensive reached $6.09. Across Michigan, the lowest price was $3.96, illustrating the wide range of costs that drivers face. The most expensive gas prices are currently found in Ann Arbor ($4.73), Benton Harbor ($4.72), and Metro Detroit ($4.71). In comparison, the least expensive prices are in Flint ($4.59), Marquette ($4.61), and Saginaw ($4.65).
"Michigan drivers are getting some relief at the pump, with gas prices down 24 cents from last week," said Adrienne Woodland, spokesperson for AAA. "But prices remain $1.65 higher than a year ago, reminding motorists that fuel costs are still significantly elevated." This sentiment resonates with many consumers who have felt the pinch of rising fuel expenses.
Meanwhile, diesel prices have also seen a minor reduction, dropping about 4 cents to an average of $6.77 per gallon. This follows a record-high price of $6.89 set just a week earlier. De Haan anticipates that diesel prices will continue to ease, though he cautions that it may take a few more days for these changes to be fully realized.
"The broader geopolitical situation remains fluid and could push prices in either direction with little warning," De Haan warned. This unpredictability is a reminder of how external factors, including international conflicts and domestic policies, can influence fuel prices. Current crude oil prices have settled at $92.41 per barrel, down $2.20 from the previous week, and U.S. crude oil inventories stand at 426.4 million barrels, which is 2% above the five-year average for this time of year.
As consumers navigate these fluctuating prices, the question remains: what should they expect in the coming weeks? With gasoline demand having climbed from 8.79 million barrels per day to 8.84 million, and total domestic gasoline supply dipping slightly, there is a complex interplay at work. Gasoline production has also seen a minor decline, from 9.64 million barrels per day to 9.59 million.
The Energy Information Administration's report indicates that crude oil inventories have increased by 3 million barrels from the previous week, providing a buffer against potential price spikes. Yet, as De Haan pointed out, the geopolitical situation is unpredictable, and any number of events could lead to sudden changes in fuel costs.
For Michigan drivers, the drop in gas prices offers a moment of relief, but it is tempered by the reality that prices remain elevated compared to previous years. As the situation evolves, consumers will need to stay informed and prepared for whatever the market may bring next.
With these dynamics at play, the cost of fuel will continue to be a pressing concern for many households across Michigan. As they fill their tanks, the hope is that the downward trend will continue, providing some much-needed financial relief as the winter months approach.