Monday, 11 December, 2017

Gas prices down, but high for time of year

Back to school, back to work, back to rising gas prices AAA Michigan: Statewide gas price has double-digit drop for second straight week
Judith Alexander | 28 November, 2017, 01:53

On average, motorists in MI ($2.44), IL ($2.43), South Dakota (2.38), Wisconsin ($2.35) and Nebraska (2.35) have seen the highest gas prices in the region this year; while Missouri ($2.17), Kansas ($2.23), OH ($2.29), Kentucky ($2.29) and Minnesota ($2.32) have seen the lowest gas price averages in the region.

Gas prices in MA are down five cents this week.

Fuel analyst Patrick DeHaan says those prices are nearing the point at which gas stations lose money, which could prompt a price hike this week in Michigan, Ohio and Indiana. Gas prices have decreased 12.6 cents from last month's average and have increased by 29.8 cents from last year's average. "Lately, we've seen a pattern of smaller seasonal discounts", says Matthew Conde, public affairs director for AAA Idaho. Nationally, prices have fallen 3.9 cents per gallon to $2.49.

The average for gas in metro Detroit also dropped about 10 cents, AAA said.

But make sure to enjoy the relatively low prices while they last. This year, the typical factors that drive gas prices down in winter were outweighed by the impact of two major hurricanes, steady consumer demand and continued growth in gasoline exports.

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Meanwhile, oil production in the USA reached 9.7 million b/d last week, according to EIA's latest report, a high not seen since April 1971.

The average price is nine cents above the national average of $2.51.

Michigan's lowest average was about $2.39 in the Saginaw area. OPEC's decision may reverberate at pumps in the months and year ahead, and while the decision is likely to be an extension of production cuts made at their meeting a year ago, it's certainly not yet guaranteed.

In time for year-end road trip planning, AAA has added new tools to GasPrices.AAA.com to provide more comprehensive gas price data and insight to motorists and journalists.

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