DETROIT – It happens like clockwork every summer, a drop in gas prices once the holiday travel rush is over.
Right now, you’ll be paying about $4.93 for a gallon of regular. That’s down about 10 cents from last week.
In Metro Detroit, it’s about $5.04, according to AAA.
“The average in the state is around $4.93 today,” said Chief Oil Analyst Denton Cinquegrana. “I think you’re down to into the $4.80s within the next several days.”
Gas prices across Michigan finally dipped below $5 a gallon.
“Going down 10 to 15 cents it’ll help,” said a man at the gas station.
“Especially for the middle class and lower-middle-class families, it will help,” said a woman at the gas station. “I think it’s important as we are saving a little bit each month.”
The dip is a slight relief stemming from a volatile day on Wall Street.
“The oil markets are just in a freefall today,” Cinquegrana said.
Despite supply issues and a dent in demand, fears of a recession sent oil prices plunging Tuesday (July 5).
“Crude oil is down significantly back below $100 for the first time since early May,” Cinquegrana said. “Gasoline futures are down like 30 cents. So these are these are big, significant movements.”
The price drop is not significant enough for frustrated consumers still shell out $1.70 more than last year.
“One of the things that the average consumer might say is like, ‘Oh, well, now July 4 is over, they could lower prices,’” Cinquegrana said. “And it’s not that easy. It’s not that simple. I mean, sure, it certainly appears that way. But right now, it’s those recession fears that are just kind of outweighing everything right now.”
AAA says the average gas price in Michigan has fallen 11 cents in one week.
“I think they raise the price so high, and then when they give you 15 to 20 cents, everyone’s happy, give me a dollar or two, put me back to where we were, we have oil companies making high profits that they haven’t before,” said another woman at the gas station.
Gas experts predict that prices could be around $4 a gallon by the end of the summer.
