Comment on the October 19 prediction: Prices rose the next day to $3.29 in Michigan, so for the most part, CORRECT, but still 10 cents higher than what I wrote.
Sunday, October 26, 2025, 6 PM: Monday’s hike to $3.29 was a “strong” hike, with nearly all stations embracing the new price. But not all, and midweek I was driving on Cascade Road and saw a Marathon at $2.68, which was the old price a week ago. The no-brand “Forest Hills Foods” gas station was sporting $3.29. I thought the $2.68 was a mistake, and that if I had time to pull in and check the pump, it would say $3.29. But, it wasn’t a mistake, because the next day, Forest Hills Food had lowered their price by 61 cents, back to $2.68.
While I have no insight as to why the owner of that Marathon ignored the (I’m just making this up, folks) price hike email, this story demonstrates the power of competition to keep prices lower. Seems that a retail station would rather lose money than lose business. Well, to be more precise, to lose money selling gas than to lose the high-profit convenience store items business. By week’s end, we saw similar behavior on Fuller St. in Grand Rapids (a festival of $2.99’s), but no such action in western Kent County on Lake Michigan Drive.
Looking to this week, there was another brief refinery issue on Friday in Indiana and a notable uptick in oil futures last week. That will keep gas prices from going down too much. But most prices are still $3.19 or higher. I suspect our friends on Cascade Rd. will probably reset soon, but I’m not expecting any hike in the rest of the region. -EA
Gas at my local Kroger in the Lansing area dropped from $3.09 to $2.89 on Thursday, 10/30. I don’t recall ever seeing a one day drop that large.
Big red hiking to $3.299 in Michigan and $3.199 in Indiana this morning.
Ed-
Sounds like this kicks in for MI gas pumps Jan 1, 2026.(see below)? The elimination of the 6% gas tax in order to add on an additional $.22 per gal gas tax …feels like a “win” for the future state of Michigan road fund coffers? What does it mean for us consumers?
Michigan gas tax to rise by nearly 21 cents per gallon for road funding
by Courtney Bennett
Mon, November 3, 2025 at 11:35 PM
Updated Tue, November 4, 2025 at 10:25 PM
FLINT, Mich. – Michigan drivers will soon face a significant increase in gas prices as the state’s gas tax is set to rise by nearly 21 cents per gallon.
This increase, effective in less than two months, is part of a new road funding plan signed into law last month.
The House Fiscal Agency estimates the total gas tax will reach approximately 52.6 cents per gallon.
The plan also eliminates the 6% sales tax on gas, reallocating funds to road projects. Genesee County is expected to see an additional $14 million in revenue, marking a 35.5% increase for its road commission.
Kylie Dontje, communications coordinator for the Genesee County Road Commission, noted, “We do have about 1,600 miles of roads that we are in charge of here in Genesee County.
A lot of them are in really good shape, and we are continually working on those.” Michigan is currently ranked sixth in the nation for fuel tax rates.
The increased revenue will address the 40% of Michigan roads deemed in poor or mediocre condition, according to a report by TRIP, a national nonprofit.
Rocky Moretti, director of policy and research for TRIP, emphasized the importance of a modern transportation system, stating, “It’s vital to day-to-day life. It’s certainly vital to the economy of Michigan.”
The House Fiscal Agency projects the increased fuel tax will generate about $1.8 billion for fiscal year 2026-2027, though the actual amount will depend on consumer spending at the pump.
Was in the $2.50s at the beginning of last week in the Toledo area, then up to $2.999 maybe Thursday, the 30th. Then this past Monday, up to $3.299. And unfortunately, it’s holding.
I will address the Michigan gas tax question when we get closer to the new year. – Ed