Statewide average updated daily • Source: AAA
Michigan gas prices typically run near to slightly above the national average, influenced by a moderate tax rate, access to Great Lakes region refinery supply, and a manufacturing-heavy economy that generates significant commercial fuel demand. The state is notably the birthplace of the American auto industry, giving Michigan a unique cultural and economic relationship with gasoline that runs deeper than almost any other state. Detroit and the southeast corner of the state generally have the most competitive prices while the Upper Peninsula runs significantly higher due to its remote geography.
Michigan’s state gas tax is around 27 cents per gallon in excise tax, but the state also applies a 6 percent sales tax to gasoline purchases which adds a significant variable component. When fuel prices are high the sales tax component increases automatically, making Michigan’s effective tax burden higher during price spikes than the flat excise rate alone would suggest.
Michigan benefits from proximity to refineries in the Great Lakes region including facilities in the Detroit area and in neighboring Ohio and Indiana. This regional refining capacity provides relatively reliable supply and keeps transportation costs lower than states in the Mountain West or Northeast that rely entirely on long-distance pipeline supply.
The Upper Peninsula is a distinct market — separated from the Lower Peninsula by the Straits of Mackinac and accessible only via the Mackinac Bridge or by ferry, the UP faces higher fuel delivery costs and limited competition that regularly push prices 20 to 40 cents above the Lower Peninsula average.
Did you know? Michigan is the birthplace of the American automobile industry — Ford, General Motors, and Stellantis all have deep roots here — giving the state a uniquely personal relationship with gasoline for over a century. The Mackinac Bridge connecting Michigan’s two peninsulas is one of the longest suspension bridges in the Western Hemisphere, and the fuel price difference between the two sides is one of the most dramatic intrastate price gaps in the country. Michigan’s 6 percent sales tax on gasoline means drivers pay more in taxes when prices are high and less when prices are low.
Compare today’s average in Michigan with nearby states to understand regional price differences.
Learn more about what drives gas prices across the United States.
Crude oil prices are the biggest driver of what you pay at the pump. For U.S. and global crude oil production data updated from EIA figures, see Oil Production Live.