This summer, Michigan residents can expect lower gas prices but higher residential electric rates and increased demand for natural gas, according to the Michigan Public Service Commission’s (MPSC) Michigan Energy Appraisal Summer Outlook 2025.
Electricity:
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- Demand is expected to increase by 2.9% for residential users and decrease by 1.5% from the industrial sector.
- Residential customers saw a weighted average rate increase from May 2024 to May 2025 of 8.4%, driven by inflationary pressures, higher fuel costs, and infrastructure investments.
Gasoline:
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- Michigan sales are expected to decline slightly by 0.78% year-over-year.
- Midwest regular-grade gasoline prices are projected to average $2.98 per gallon during the April-September season. The average price in 2024 was $3.34 per gallon.
- However, unforeseen refinery outages, international political unrest, adverse weather conditions, or other supply disruptions could lead to higher prices.
- Midwest prices for 2025 are expected to average $2.94 per gallon and slightly decrease in 2026 for an average of $2.86 per gallon.
Natural Gas:
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- Consumption is expected to increase by 3.5%.
- Residential usage is expected to rise 14.7%, commercial usage is anticipated to rise by 12.7%, and industrial sector usage is also projected to rise by 14.3%.
- Demand for natural gas from the electric power sector is expected to decline by 11.2% due to rising natural gas prices.
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