When will Michiganders see gas prices in the $3 range again? It could take years, an expert says WXYZ Detroit.

“Maybe not for another year, two or three,” Patrick De Haan, head of oil analysis at GasBuddy, told the TV station.

Today the national average is $5.02 per gallon; in Michigan is $5.20 a gallon.

“Part of the reason is that gas supplies in Michigan — and the Great Lakes — are at their lowest seasonal levels on record,” De Haan said. “We’re going into the summer with the lowest amount of gas we’ve ever had, and those records go back to 1990.”

The continuous price increases are the result of a “perfect storm”, according to GasBuddywhich is accelerated by the increase in summer demand amid supply constraints resulting from the pandemic and the Russian war against Ukraine.

Gas prices have surged in recent weeks as U.S. gasoline inventories have fallen by more than 25 million barrels since early March amid a global decline in refining capacity due to the COVID-19 pandemic and increased demand in the summer, according to GasBuddy. The price of oil has also surged due to escalations resulting from Russia’s war on Ukraine, as countries choke off Russian oil supplies via sanctions, depressing supply at a time when demand is rising. Additionally, US refining capacity has shrunk by about 1 million barrels per day over the past three years.

These factors have created an environment conducive to soaring gasoline prices as Americans balk at prices but continue to fill up as demand has fallen little, according to GasBuddy.

“There’s been one fold after another this year, and worst of all, demand doesn’t seem to be responding to soaring gas prices, which means there’s a high likelihood that prices will rise further. in the coming weeks,” De Haan said in a statement. “It’s a perfect storm of factors all lining up to create a rare environment of rapid price increases. an impact on oil production or refineries this summer.

GasBuddy recommends that drivers seek out the best gas prices and always pay with a gas card or gas rewards credit card. Drivers should also take advantage of service station loyalty programs.


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