Fuel prices are rising again, with diesel hitting a new high in Michigan of $6.54 a gallon and gasoline edging up – in some places in Michigan – to nearly $5 a gallon. Some to worry that it is an indicator of even more trouble ahead for the economy.
In Michigan, the price of gasoline on Thursday, Sept. 17, jumped to a statewide average of $4.76 a gallon, up nearly 22 cents from the day before and 45 cents in a week, according to AAA. Diesel, which has been setting a new record daily, is higher than it has ever been.
The price increases in the United States have come as the conflict with Iran has expanded to other Arab nations and oil companies point out that reserves have been drawn down and refining capacity is being destroyed not just in the Middle
East, but also in Europe, where Russia and Ukraine are targeting energy infrastructure.
What's more, according to news reports, the high fuel prices are now sparking protests worldwide.
Fuel prices in America were this high earlier in the year, but fell when it appeared there might be a diplomatic resolution to the war. When strikes resumed and then expanded into other parts of the Middle East, oil and fuel prices rose.
Average gasoline prices have been higher – briefly in 2022 – and some analysts, like GasBuddy's Patrick De Haan, have posted warnings to social media of rising prices, but also cautioned that there's "plenty of bad widely shared info and has been for months," such as statements declaring that there's only fuel for 40 days.
But petroleum experts have said, however, that gasoline spiked in 2022 as a result of disruptions caused by the pandemic and economic sanctions imposed against Russia, a significant oil producer, after it invaded Ukraine. This time, global oil production is off because of the war that the United States launched with air strikes against Iran.
It’s unclear how long both wars will continue.
Nor does anyone know if Middle East shipping lines have reopened, or how long it will take for prices to come down.
Contact Frank Witsil: 313-222-5022 or fwitsil@freepress.com
This article originally appeared on Detroit Free Press: Gasoline close to $5 a gallon in Michigan, diesel hits new record high
