Unrest overseas and supply disruptions will continue to increase the cost of gasoline and diesel fuel, according to the latest report by the Michigan Public Service Commission (MPSC). The assessment of Michigan’s energy baseline is conducted twice per year to raise awareness of the energy environment, including supply and prices, expected conditions, and changes projected over the coming six months.
Gasoline:
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- Michigan gasoline sales are expected to decline by 4.7% in 2026.
- The average price statewide for a gallon of regular unleaded gasoline has increased by 51% year-over-year.
- Nationally, gasoline inventories are 4.7% lower than the 5-year range for this time of year.
Electricity:
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- If typical weather holds, total electric sales are expected to decrease by 0.6% year-over-year.
- Residential electric customers saw a weighted average rate increase of 4.6% from the prior year.
- Michigan residential electric rates are higher than the national average; however, average electric bills in Michigan are lower than the national average.
Natural Gas:
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- Michigan’s natural gas consumption is expected to rise by 6.5% this year.
- Natural gas storage levels in Michigan are projected to be 0.8% lower than in 2025. Michigan has over 10% of the nation’s available underground storage capacity for natural gas, the largest of any state.
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