Michigan Gas Prices and Why They Are What They Are
Prices as of July 06, 2026, per AAA · Updated July 06, 2026
As of July 06, 2026, regular gasoline in Michigan averages $3.94/gallon (the 13th-highest in the U.S.), per AAA — 0.11 above the national average of $3.83. Diesel averages $4.96. State fuel taxes and fees add 48.2¢/gallon on top of the 18.4¢ federal excise.
Where the $3.94 goes
| Component | $/gallon | Share | Source |
|---|---|---|---|
| Crude oil (national cost, WTI June 2026) | 2.04 | 52% | EIA |
| Federal + Michigan fuel taxes (18.4¢ + 48.2¢) | 0.67 | 17% | Tax Foundation |
| Refining, distribution, margins & embedded program costs (residual) | 1.24 | 31% | computed |
Crude oil costs every state's refiners roughly the same, so Michigan's position comes from the tax line and the residual: refining capacity and logistics, fuel-specification requirements, and any carbon or clean-fuel program costs embedded in the pump price.
State policies that show up at the pump
| Policy | Detail |
|---|---|
| State sales tax on fuel | Yes (6%) |
| Cap-and-trade on motor fuel | No |
| Low Carbon Fuel Standard | No |
| State-only fuel blend | No ยท federal blend |
| Federal RFG areas | Yes (Detroit metro) |
| Refinery count | 3 active |
| Pipeline access | Yes (Enbridge + Wolverine) |
State government control
| Control today | Divided government (Governor and Senate D; House R) |
| Years of unified Democratic control, 2001–2025 | 2 |
| Years of unified Republican control | 10 |
| Years of divided government | 13 |
Fuel-tax levels and fuel-specification programs are set by legislatures and governors; the national comparison shows average prices and taxes grouped by state control.
Compare: all states ranked · Michigan electricity rates · gasoline prices by country
Sources: AAA (pump prices, updated daily; the industry-standard 50-state series), Tax Foundation (2026 state fuel taxes), EIA (WTI crude). The residual is computed, not reported. See methodology.