Gas prices drop 7 cents across Michigan

DEARBORN, Mich. – Gas prices decreased from last week, AAA Michigan reports.

Michigan's current statewide average is about $2.41 per gallon, about 7 cents less than last week's average and about $1.21 less than this same time last year.

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The current Metro Detroit  average is about  $2.43 per gallon, about 3 cents less than  last week and about $1.19 less than this same time last year.

Of the cities surveyed by AAA , the cheapest price for self-serve unleaded fuel can be found in the Saginaw-Bay City-Midland area, where it's about $2.33 a gallon.

The highest average gas price can be found in the Jackson area where it's about $2.46 a gallon.

According to current AAA  reports:

Michigan placed eighth in the nation (+28 cents) when it comes to top ten largest monthly increases in gas prices.

When comparing week-over-week pump prices, motorists with the biggest jump in prices are the Midwestern states of Illinois (+27 cents), Michigan (+24 cents) and Indiana (+17 cents).

Dramatic price swings are unfortunately nothing new for Midwest drivers who have seen frequent price volatility in recent years.

This most recent increase has been keyed by issues at two major regional refineries: BP's refinery in Whiting, IN. and ExxonMobil's refinery in Joliet, IL.

Global crude prices continued to tumble with reports of growing supply and the strengthening U.S. dollar.

The likelihood of a possible nuclear deal between the West and Iran also has the potential to bring more oil to the global market.

The domestic oil market in the U.S is facing similar oversupply dynamics and concerns that rising U.S. production could outpace storage capacity is contributing to lower prices.