GRAND RAPIDS, Mich. — Gas prices in West Michigan have jumped more than $1/gallon over the past month, with the average now hovering around $4 per gallon as conflict in Iran continues to impact global oil markets.
Despite the United States being the world’s largest oil producer, analysts say international events still play a major role in prices at the pump.
“We live in a global economy,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Oil producers can sell that oil on the global market, where it’s fetching a much higher price, especially when customers in East Asia and Europe are suddenly cut off.”
The disruption stems in part from instability and blockades affecting the Strait of Hormuz, a critical passage for global oil shipments.
Some may wonder why the U.S. government doesn’t simply restrict oil exports to keep prices lower domestically. De Haan said that approach could backfire.
Blocking exports would discourage domestic oil production and could lead to refinery closures, ultimately driving prices even higher in the long run, he said.
“There is a silver lining,” De Haan added. “As one of the largest oil producers, the U.S. still has fuel available, even if it’s more expensive.”
In other parts of the world, the situation is more difficult. Countries affected by disruptions in the Strait of Hormuz are beginning to ration fuel due to supply shortages.
“You still have gas at the pump. You still have diesel,” De Haan said. “It may be more expensive, but at least you have it, because areas like Australia are literally running out of fuel.”
De Haan predicts gas prices could soon rise above $4 per gallon on average, while diesel prices could climb toward a potential record of $6 per gallon if disruptions in the region continue.
Gas prices continue to hold steady near $4 a gallon across West Michigan and nationwide as the war in Iran enters its fourth week.
In Michigan, prices are up about 94 cents compared to this time last month. However, prices dipped by a few cents this week, and drivers could see another slight decrease heading into the weekend. Waiting to fill up could be the best bet to save cash at the pump.
According to GasBuddy.com, the Grand Rapids area is seeing an average price of $3.94 a gallon as of 6 a.m. Tuesday morning.
Average prices across West Michigan counties include:
- Kent County: $3.96 per gallon
- Muskegon County: $3.95 per gallon
- Kalamazoo County: $3.94 per gallon
- Ottawa County: $3.92 per gallon
These figures represent the most up-to-date averages for the entire county, so prices at local stations may vary.
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