Michigan gas prices set 2025 record with more increases likely: What’s driving the surge

Michigan gas prices set a new high for 2025, reaching $3.28 a gallon for regular unleaded last week, and then dropped slightly to $3.23 a gallon on Sunday, which is still up 13 cents from one week ago.

Prices, however, are expected to continue to creep up.

“Drivers across Michigan are seeing the highest gas prices so far in 2025,” Adrienne Woodland, a spokeswoman for AAA auto club, said. “Pump prices will likely face upward pressure if gasoline stocks continue to decrease as oil prices increase.”

In Michigan, the price was 21 cents more than this time last month but 32 cents less than this time last year. Motorists were paying an average of about $48 for a 15-gallon tank of gasoline.

The national average gasoline price was slightly higher than the state’s at $3.26 a gallon, with some states — including California, Hawaii and Washington — respectively paying, on average, $4.91, $4.52 and $4.30 a gallon.

Multiple factors, AAA said, are driving the increase, including refinery maintenance and a summer-blend gasoline switch and a decline in demand for gas as drivers continue to feel the pinch on increased prices on other items while gasoline production has also increased.

But U.S. oil prices have fallen, dipping below $60 a barrel on Sunday, connected, reports said, to the fallout from the president’s new round of tariffs, which are disrupting markets.

More: US Rep. Shri Thanedar warns tariffs will raise prices, hurt Americans

While cheaper oil often leads to cheaper fuel, news outlets reported it also could lead oil and gas companies to slow production, which could raise prices later and lead to less drilling and worker layoffs, which would be harmful to oil-production states.

And Oilprice.com, an online energy news site, reported under the headline, “Today’s Oil Prices Aren’t Survivable For US Producers,” that oil prices are “not sustainable for some US producers.”

The higher tariffs, Federal Reserve Chair Jerome Powell said could slow economic growth.

In metro Detroit, gas prices increased, averaging $3.22 a gallon, about a dime more than last week’s average, but still 34 cents less than a year ago.

Around the state, the most expensive gas price averages were in Benton Harbor, $3.28 a gallon; Ann Arbor, $3.28 and Jackson, $3.25. The least: Traverse City, $3.04 a gallon; Marquette, $3.20 and Saginaw, $3.21.

Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.

This article originally appeared on Detroit Free Press: Michigan gas prices set 2025 record with more increases expected