Gas Prices in Michigan jumped more than 20 cents last week—ranking first nationwide—as oil markets react to U.S. military action and Middle East instability.

Michigan Leads U.S. in Gas Price Hikes Amid Middle East Conflict

Gas Prices in Michigan surged by 20.2 cents per gallon last week, marking the steepest rise among all states, according to data from GasBuddy released June 23. The national average now stands at $3.18 per gallon, with nearly every state reporting increases due to heightened global tensions, particularly in the Middle East.

“With Israel and Iran trading attacks over the past week, oil prices have continued to climb—and gasoline prices are following suit,” said Patrick De Haan, head of petroleum analysis at GasBuddy. He emphasized that while the increases are sharp, extreme predictions on social media are largely unfounded. “Motorists should anticipate a continued steady climb in prices.”

Middle East Military Action Drives Oil Price Volatility

The sharp rise in Gas Prices in Michigan coincides with rising international unrest. A U.S. strike on Iranian nuclear facilities has escalated hostilities in the region, which in turn is shaking global oil markets.

As of early Monday, WTI crude was trading at $73.78 per barrel, up from $71.85 a week earlier. Brent crude increased to $76.86 from $73.12. While prices showed slight retracement, analysts say the volatility is likely to continue.

“Crude prices spiked as tensions in the Middle East flared. The risk premium now factored into prices could fade in case of no supply disruptions,” said Giovanni Staunovo, commodities analyst at UBS, in comments reported by CNBC. “But it will likely stay elevated for now.” Source: CNBC

Michigan Gas Prices Outpace National Trend

While the national average rose 9.7 cents per gallon, Gas Prices in Michigan surged more than twice that. Other states with notable increases included Delaware (+13.8¢), Texas (+12.4¢), and New Hampshire (+12.1¢). The median U.S. gas price is now $3.05, still below Michigan’s current average.

The most common U.S. gas price reported was $2.99, but in Michigan, many pumps are already pushing past $3.40. De Haan predicts that Gas Prices in Michigan could rise another 7 to 15 cents in the coming week.

Diesel Prices See Largest Jump Since August 2023

Diesel is also climbing rapidly. The national average price for diesel now sits at $3.649 per gallon, up 16.1 cents—the most significant jump since August 2023. Wisconsin saw a 28.2-cent weekly spike, with Indiana (+22.6¢) and Minnesota (+21.5¢) following closely.

Michigan, already a key logistics corridor, could feel the impact of diesel price increases across the supply chain, particularly in farming and freight sectors.

U.S. Crude Inventory Drops Sharply as Summer Demand Rises

The U.S. Energy Information Administration (EIA) reported that oil inventories fell by 11.5 million barrels, placing them 10% below the five-year seasonal average. Gasoline and distillate stockpiles saw minor gains but remain below historical norms.

Refinery utilization fell slightly to 93.2%, while retail gasoline demand rose to 9.299 million barrels per day, signaling a busy summer travel season ahead—just as prices are rising.

Michigan Drivers Turn to Apps to Manage Costs

With Gas Prices in Michigan soaring, budget-conscious motorists are turning to mobile tools like GasBuddy, which has been downloaded nearly 90 million times. The app monitors 150,000 gas stations across North America and offers multiple features for finding the lowest local prices and maximizing savings.

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