News

Gas prices expected to drop further U.S. Energy Secretary says

Posted at 6:07 AM, Aug 15, 2022
and last updated 2022-08-15 06:07:22-04

(WXYZ) — Gas prices have not been a driver's best friend this summer, but things are now starting to look up as gas prices have continuously dipped down from their all-time highs.

Right now the current average for regular gas in Michigan is $3.95.

In metro Detroit, the average price of gas is $4. This is $1.22 less than the all-time record high set back in June.

Nonetheless, drivers are still paying an average of $59 to fill up a 15-gallon tank. That's $8 more than the 2021 highs set last November.

So why are gas prices continuing to drop? Many reasons. One of them is related to the falling crude oil prices and another reason is because of reduced demand from drivers.

The United States has also been pumping out 1 million barrels of gas per day from the Strategic Petroleum Reserve.

"Our energy information administration has put out their short-term energy outlook and they are projecting at the moment, without knowing what's going to happen globally, that the price in the fourth quarter of this year per gallon will probably drop to about $3.78. So we hope that that's true, but again, it can be impacted by what's happening globally," U.S. Energy Secretary and former Michigan Governor Jennifer Granholm said on CNN's State of the Union.

But gas prices could rise again if there is a hurricane that knocks production offline.