Michigan gas prices average $5.22 a gallon, likely cutting into summer vacation plans
The national average for a gallon of regular gasoline crossed the $5 mark, a psychological threshold that could cut into summer vacation plans and likely will continue to ratchet up demand for electric vehicles — and ride-sharing services.
In Michigan, motorists Sunday were paying an average of $5.22 a gallon, a record high, according to AAA, which tracks prices at about 85,000 gas stations throughout the United States.
Analysts and drivers fear it will continue to climb — daily.
Earlier this month, as the national average of gas surged 25 cents in one week to hit $4.86 a gallon, AAA spokesperson Andrew Gross said despite the high prices, folks were still fueling up, but it was unclear how long that would last.
"At some point," he added said, "drivers may change their daily driving habits or lifestyle due to these high prices."
Are we now at that point?
With the national average for a gallon of gas at $5.01, many municipalities are wrestling with fuel costs. The Isabella County Sheriff’s Office announced last week that it is "feeling the pain at the pump," and has exhausted its gas budget.
In Michigan, the average price for gas is 87 cents more than a month ago, and $2.05 more than a year ago. Michiganders are paying more than $78 just to fill up a 15-gallon tank of gas.
The national average could hit $6 or more later this summer, analysts predict.
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In metro Detroit, average gas prices were $5.30 a gallon, the most expensive in the state. In Ann Arbor, it was $5.27 and flint $5.18. In contrast, the least expensive prices were in Traverse city, at $5.08, and in the Saginaw-Midland-Bay City areas, at $5.17.
High gas prices add to transportation costs and threaten to increase the price of goods. And according to a Seattle Times editorial, are causing economic hardship and even threatening democracy.
At the same time, it could be good for some car sales.
The demand for electric cars — while still small — has been on the rise.
Electric cars sales worldwide hit 6.6 million in 2021, more than tripling their market share from two years earlier, according to the International Energy Agency is a Paris-based autonomous intergovernmental organization.
Automakers have been announcing plans to electrify more offerings during the next decade, and Ford, even split its operations between electric and internal combustion engine vehicles.
Ford CEO Jim Farley has said consumers should plan to see dramatic change in the near term as companies compete amid the shift to battery-operated vehicles, and company sees huge profits in making electric cars for ride services Lyft and Uber.
The high price of gas, national news outlets report, has put pressure on these services, which have added surcharges and are facing complaints from drivers who say they aren't earning enough money.
But the new electric vehicle offerings, including electric pickups, are enticing to consumers interested in buying electric cars.
Almost a quarter of shoppers surveyed in the J.D. Power 2022 U.S. Electric Vehicle Consideration Study released last month said they were "very likely" to consider an electric car for their next purchase or lease.
And the rising cost of gas will add to that demand.
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com.
This article originally appeared on Detroit Free Press: Michigan gas prices at $5.22 a gallon, likely cutting into vacations
