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Gas prices increase by 20 cents in Michigan

New AAA of Michigan report released

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

Michigan's current statewide average is about $2.48 per gallon, about 20 cents more than last week's average and about $1.14 less than this same time last year.

The current Metro Detroit  average is about  $2.46 per gallon, about 19 cents more than  last week and about $1.16 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 Marquette area, where it's about $2.45 a gallon.

The highest average gas price can be found in the Traverse City area where it's about $2.56 a gallon.

Michigan placed second in the nation (-$1.47) when it comes to largest yearly saving in gas prices.

Michigan is part of a handful of Midwest states that are bucking the month-over-month price increase trend, as prices are down in Indiana (-12 cents), Ohio (-9 cents), Kentucky (-6 cents), Michigan (-4 cents) and Illinois (-2 cents) versus one month ago.

Average gas prices tend to moves higher this time of year because refineries conduct planned maintenance, which can limit fuel production.

Refineries are also beginning to transition to summer-blend fuel in advance of the May 1 deadline.

As part of this process, refineries draw down current inventories of winter-blend fuel, which can further constrain supplies.

Gas prices should remain relatively cheap because crude oil costs are much lower than recent years and U.S. inventories have risen for nine straight weeks, which should keep downward pressure on retail gasoline markets.