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AAA | Thanksgiving Gas Prices To Be Lowest In Two Years

Michigan Business Network
November 21, 2018 8:00 AM

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News Release Provided By AAA

Oil Hits 2018 Low; Michigan Gas Prices Should Average $2.45 per gallon on Thanksgiving Day.

DEARBORN, Mich., (November 19, 2018) — Oil prices hit a new low last week, further fueling the plunge at the pump. Gas prices in Michigan dropped another 12 cents last week. At $2.49 per gallon, the state average is the lowest since February, and only 7 cents more than this year's lowest daily average price of $2.42/g.


Thanksgiving Travel Volumes
  • Total Thanksgiving Travelers
    • 48.5 million Americans
    • 1.7 million Michiganders
  • Automobile Travelers
    • 48.5 million Americans
    • 1.6 million Michiganders

Motorists in Metro Detroit also saw deep discounts last week. The average price of $2.55/g is down 12 cents on the week, and the lowest daily average since March. Detroit gas prices remain about 10 cents more than the lowest average price of the year ($2.44). 

Michiganders will find the lowest Thanksgiving gas prices in two years. AAA forecasts more than 1.7 million Michigan residents will travel this week. Of those, nearly 1.6 million will drive. By Thanksgiving Day, the state average should drop to $2.45/g, and $2.50/g in Metro Detroit. Compared to last year's holiday, that would be a discount of 12 cents and 11 cents respectively. 

                Thanksgiving Day Gas Price History
  2013 2014 2015 2016 2017 5 Year Average
National $3.28 $2.80 $2.05 $2.13 $2.52 $2.56
Michigan $3.27 $2.92 $1.86 $2.09 $2.57 $2.54
Detroit $3.24 $2.88 $1.86 $2.09 $2.61 $2.54

Click here to view AAA's state and metro gas price averages

  • Most expensive gas price averages: Marquette ($2.71), Ann Arbor ($2.59), Traverse City ($2.55)
  • Least expensive gas price averages: Grand Rapids-Muskegon-Holland ($2.34), Benton Harbor ($2.38), and Jackson ($2.40)

"Michiganians can be thankful for strong oil production and global supplies, which have set the table for some of the lowest gas prices of the year," said Nancy Cain, spokesperson, AAA - The Auto Club Group. "Michigan's average price should carve-off another 5 cents before Thanksgiving. However, there is potential for upward pressure on gas prices to return soon, depending on how markets respond to possible OPEC oil production cuts and sanctions against Iranian oil exports."

Weekly Fuel Data - U.S. Energy Information Administration 

         Fuel Price Breakdown
  • Thanksgiving gas prices are poised to be the lowest in 2 years in some states
  • Oil prices plunged due to strong production and global supplies, and weakening demand
  • Crude oil sank to the lowest price of 2018
    • $55.69/b is the lowest since November 2017
  • Zero states have an average gasoline price below $2 per gallon
  • Oil prices would have to drop another $10-$15 for sub-$2 gasoline to become more prevalent
  • Crude oil supplies increased 2.4 percent (8th consecutive weekly gain)
  • Crude production reached a historic 11.7 million barrels per day - a 100,000 bpd increase from the week before
  • Gasoline demand increased 1-percent 
  • Gasoline supplies dipped slightly by a little more than a half percent
  • Gasoline production remains strong for this time of year

Sub-$2 Gasoline?

Motorists are beginning to find Sub-$2 gasoline at various filling stations in states with low gas taxes like Tennessee, Alabama, and Louisiana. However, there are currently zero states where the average price is anywhere near $1.99 per gallon. Oil prices would have to drop another $10-$15 per barrel, for sub-$2 gasoline to be prevalent. The state with the lowest average price in the country today is Missouri ($2.28/g). 

  • The national average price for gasoline was last below $2 per gallon in March 2016
    • During that time, oil prices were in the high $30's
  • Michigan's average price for gasoline was last below $2 per gallon in April 2016
    • During that time, oil prices were in the high $30's
  • Detroit's average price for gasoline was last under $2 per gallon in April 2016
    • During that time, oil prices were in the high $30's 

Early last week, the U.S. benchmark for crude oil dropped to $55.69 per barrel - the lowest since November 2017. By Friday, the daily settlement reached $56.46/b - which is still about $4/b less than last week, and $20/b less than this year's high, set last month. 

Gas Price Tools


                                                                 CURRENT AND PAST PRICE AVERAGES

                                                                                     Regular Unleaded Gasoline

Sunday Saturday Week Ago Month Ago One Year Ago 2018 Low 2018 High Record High
National $2.631 $2.640 $2.703 $2.872 $2.549 $2.49   (1/3/2018) $2.97 (5/26/2018) $4.11   (7/17/2008)
Michigan $2.493 $2.506 $2.614 $2.813 $2.650 $2.42 (2/21/2018) $3.13 (5/25/2018) $4.26    (5/4/2011)
Detroit $2.548 $2.559 $2.666 $2.848 $2.686 $2.44 (2/27/2018) $3.11 (5/25/2018) $4.24    (5/4/2011)
Click here to view current gasoline price averages

Gas Price Survey Methodology
Every day up to 130,000 stations in the nation and more than 4,200 stations in Michigan are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline. 

AAA updates fuel price averages daily at www.GasPrices.AAA.com.

About AAA - The Auto Club Group
AAA in Michigan celebrated its 100th Anniversary - A Century of Service in 2016 and has over 1.4 million members across the state. It is part of The Auto Club Group (ACG).  Connect with us on Facebookand LinkedIn.

About AAA - The Auto Club Group

AAA in Michigan celebrated its 100th Anniversary - A Century of Service in 2016 and has over 1.4 million members across the state. It is part of The Auto Club Group (ACG). Connect with us on Facebook and LinkedIn.

The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9.6 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana. ACG belongs to the national AAA federation with more than 59 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety. Motorists can map a route, identify gas prices, find discounts, book a hotel, and access AAA roadside assistance with the AAA Mobile app for iPhone, iPad and Android. Learn more at AAA.com/mobile. Visit AAA on the Internet at AAA.com.

Michigan Business Network is an online broadcasting company that provides knowledge, news, and insights into Michigan’s businesses, industries, and economy.