Gas prices see massive spike to $3.43 per gallon average in Michigan; what's fueling the rise?

Posted at 8:08 AM, Nov 08, 2021

(WXYZ) — Gas prices across the state, including in metro Detroit, are up across the board and costing you more at the pump.

According to AAA Michigan, the current gas price is $3.43, up $1.43 from a year ago at this time.

The prices also jumped 16 cents from last week and set an all-new 2021 high.

AAA said there are several factors as to why gas prices are going up. Supply and demand are playing a role, but crude oil prices are also going up.

It comes as Thanksgiving approaches and millions of people are about to hit the road.

"Prices across the state are certainly up. Metro Detroit surprisingly is one of the lowest metro areas in the state at $3.40 cents a gallon for regular unleaded, and that's up about eight cents compared to this time last week," AAA spokesperson Adrienne Woodland said.

So what's fueling the rise at the pump? There have been deep production cuts in the U.S. over the last year.

Supply and demand have increased as more people are hitting the road to go back to work, and crude oil prices have been trading at over $80 a barrel over the last two weeks.

Woodland also said that Midwest gasoline stockpiles have dropped to one of their lowest levels since November of 2014.

"This is one of the factors that is putting upward pressure on prices across Michigan and other states in the Midwest," she said.