TRAVERSE CITY — Gas prices in Michigan are down 12 cents from a week ago, with drivers now paying an average of $2.73 per gallon for regular unleaded, a new low for 2025.
According to AAA data, gas prices statewide is 43 cents less than this time last month and 38 cents less than this time last year, according to the release.
Motorists are paying an average of $40 for a full 15-gallon tank of gasoline, a discount of about $17 from 2024’s highest price last July.
New data from the Energy Information Administration showed gasoline demand increased from 8.45 million barrels per day to 9.07 million, while total domestic gasoline supply rose from 220.8 million barrels to 225.6 million. Gasoline production also increased last week, averaging 9.6 million barrels per day.
Locally, prices are trending down as well.
TRAVERSE CITY
The average price for regular unleaded gasoline in Traverse City is $2.544 per gallon, according to the latest gas price table provided.
Midgrade gas is averaging $3.116 per gallon, while premium is $3.682 and diesel is $3.613.
Prices are largely unchanged from the previous day, when regular averaged $2.543, midgrade $3.116, premium $3.675 and diesel $3.615. A week ago, Traverse City drivers paid an average of $2.680 for regular, $3.208 for midgrade, $3.755 for premium and $3.690 for diesel.
One month ago, the average price for regular in Traverse City was $2.854 per gallon, compared with $3.471 for midgrade, $3.934 for premium and $3.994 for diesel. A year ago, regular averaged $3.121, midgrade $3.612, premium $4.117 and diesel $3.705.
The highest recorded average price in Traverse City for regular unleaded was $5.153 on June 8, 2022. Diesel reached a record average of $6.000 on July 10, 2022.
SAGINAW | BAY CITY | MIDLAND
In the Saginaw-Bay City-Midland area, the current average price for regular unleaded is $2.627 per gallon. Midgrade is averaging $3.276, premium $3.817 and diesel $3.434.
Yesterday, regular in that region averaged $2.639, with midgrade at $3.280, premium at $3.833 and diesel at $3.444. A week ago, drivers paid $2.829 for regular, $3.441 for midgrade, $4.012 for premium and $3.593 for diesel.
A month ago, regular in the Saginaw-Bay City-Midland area averaged $3.145 per gallon, compared with $3.756 for midgrade, $4.317 for premium and $4.016 for diesel. One year ago, regular averaged $3.180, midgrade $3.694, premium $4.265 and diesel $3.542.
The highest recorded average price in the Saginaw-Bay City-Midland region for regular unleaded was $5.195 on June 8, 2022. Diesel reached a record average of $5.984 on June 20, 2022.
At the close of Wednesday’s formal trading session, West Texas Intermediate crude oil rose 67 cents to settle at $55.94 a barrel. The EIA reported crude oil inventories decreased by 1.3 million barrels from the previous week. At 424.4 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
AAA is forecasting nearly 4 million Michiganders will travel during the 13-day year-end holiday period from Dec. 20 through Jan. 1. Of those, 3.5 million are expected to drive, with gas prices much lower than last Christmas when the state average was $3.06.
“As the Michigan average hits a new 2025-low, drivers hitting the road for the holidays will enjoy some of the lowest gas prices of the year,” said Adrienne Woodland, spokesperson for AAA-The Auto Club Group.
In Metro Detroit, the average daily gas price also declined. Drivers there are paying an average of $2.80 per gallon, about 6 cents less than last week and 27 cents less than this time last year.