(The Center Square) – Michigan drivers are seeing some relief at the pump as gas prices continue to decline amid reports of a forthcoming U.S.-Iran peace agreement.
The United States and Iran are expected to sign a peace agreement this week aimed at ending conflict in the region and reopening the Strait of Hormuz, a critical trade route for global oil transport.
While prices remain significantly higher than a year ago, Michigan drivers have seen some relief at the pump in recent days, as costs continue to fall from recent highs that first began with the outbreak of the conflict in Iran in February.
On Tuesday, Michigan’s average price for regular unleaded gasoline stood at $4.15 per gallon, according to AAA. That is down from $4.18 on Monday, $4.22 a week ago and $4.86 a month ago.
Despite the recent decline, Michigan motorists continue to pay $0.11 more than the national average of $4.04 per gallon. The state’s average also remains substantially higher than a year ago, when regular unleaded gas averaged $3.08 per gallon.
Michigan’s average price for mid-grade gasoline is $4.76 per gallon, while premium averages $5.34.
Diesel prices have fallen to $5.54 per gallon from $5.68 a week ago and $6.17 a month ago. Diesel reached a historic average high of $6.21 in Michigan on May 14, according to AAA’s records.
This decline is happening nationally as oil markets reacted positively to news of a potential agreement between Washington and Tehran.
“Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz,” President Donald Trump wrote on social media Monday.
Specific details of the agreement have not yet been released publicly.
GasBuddy reported that U.S. gasoline prices nationally have fallen below $4 per gallon for the first time since April since the deal was announced.
“The decline came as oil prices moved sharply lower in reaction to news of a potential deal between the United States and Iran, though it remains to be seen whether the agreement will hold,” said Patrick De Haan, head of petroleum analysis at GasBuddy.
Despite recent declines, Michigan drivers continue to pay more at the pump than the national average and many neighboring states. The contrast is especially stark with Indiana, where motorists currently enjoy the nation’s lowest average gas price at $3.36 per gallon-roughly $0.80 less than Michigan’s statewide average.
Nationally, California continues to have the highest average gas prices at $5.71 per gallon.
Prices also vary considerably across Michigan. Presque Isle County recorded the state’s highest average gas price at $4.43 per gallon, while Delta County had the lowest average at $3.82 per gallon. That is a difference of more than $0.60.