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Governor Gretchen Whitmer signed an executive order allowing farmers and loggers to use dyed diesel, which is untaxed, on public roads as diesel prices hit record highs.
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AAA says Labor Day travel is expected to increase in Michigan when compared to last year. This comes as gas prices, airline tickets, and hotel bookings increase in cost.
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Mid-Michigan motorists face higher fuel costs as geopolitical tensions keep pressure on oil markets.
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Gas prices in Michigan have increased by 19 cents compared to last month, according to AAA. The state’s average is currently $4.27 per gallon.
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Oil prices have dropped, but analyst Patrick DeHaan says gas could be cheaper if not for attacks on refineries in Russia.
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The U of M Surveys of Consumers' May 2026 index of consumer sentiment dipped to a record low in its third consecutive month of decline.
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High gas prices have some in the tourism industry worried that summer vacationers will choose to stay home this year. But it’s complicated up north, where high travel costs nationwide could actually drive more visitors to northern Michigan—visitors who would normally look to travel farther away.
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Analysts blame the disruption caused by the war with Iran and refinery issues for the huge price spike this week to $5 for a gallon of unleaded at a growing number of Michigan gas stations.
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Michigan drivers are paying the highest prices at the pump since the summer of 2023, according to an analysis by AAA of Michigan.
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According to AAA, gas prices in Michigan are 13 cents less expensive than they were this time last year.