AAA: Michigan gas average jumps 15 cents overnight; will gas reach $5 a gallon?

gas high
Posted at 6:25 AM, Mar 08, 2022
and last updated 2022-03-09 18:33:56-05

(WXYZ) — As we eclipsed the $4 mark for gas the question remains—is $5 or $6s gas around the corner?

"It's possible but it's improbable. So worst-case scenario maybe you can get to $5 a gallon in metro Detroit," Patrick Dehaan of GasBuddy said. "I don't see that it's not in the pipeline yet but that could change down the road if there's more escalations."

And for drivers here in metro Detroit, the gas prices are already starting to break the bank.

Related: Interactive map: View gas prices by county in Michigan

"Uber should give us more money. They really should. I would like it," Uber driver Gawain Mandeville said.

But a huge amount of what you pay in fuel costs is state and federal tax. Wholesale right now, a gallon of regular unleaded in Michigan is $3.25 a gallon, plus 18 cents in federal tax, 27 cents in state motor fuel tax, and 21 cents in sales tax.

If we do the math right it brings the base cost for gas stations to $3.90 a gallon.

Those taxes are used to fund road repairs and schools, but some lawmakers, according to Michigan Petroleum Association President Mark Griffin are pondering a gas tax holiday.

"I think it is probably a good idea to do whatever we can to try to mitigate the effects of the worldwide crisis we are in," he said.

Dehaan says as more Americans look at EV's as an alternative to traditional vehicles, the U.S. government needs to be looking out for its own energy security.

"I think for now though we are going to be stuck with elevated prices until the situation is over. While we transition to EV's we should also be increasing the united states energy security," he said.