State energy regulators have issued their summer energy appraisal. It's no surprise they predict much higher gas and diesel prices than last year.
"The impact of the unrest in the Middle East and Ukraine continue to impact costs of gasoline and diesel fuel and other distillates, with supply disruptions pushing up costs," the appraisal by the Michigan Public Service Commission said. "The geopolitical tensions in the Middle East, including the closure of the Strait of Hormuz, a crucial shipping route, are putting significant upward pressure on refined petroleum products such as gasoline and diesel at a time when inflation was already rising."
The average price of a gallon of gas in Michigan was $4.71 last week and the report said continued global unrest could drive that price higher.
The report also said gas sales will decline slightly as Michiganders try to save money at the pump by driving less.
Electricity rates increased for Michigan residents compared to last year, the report notes, with DTE Energy's 6.5% increase the highest.
There's some good news in the appraisal for summer electricity bills, though. NOAA's Climate Prediction Center expects a cooler summer than last year. So Michiganders may be able to use their air conditioning less.
Availability of energy itself shouldn't be a problem, the appraisal said.
"As the summer driving and cooling season begins, residents should expect energy supplies to be readily available to meet their needs, even as prices are affected by
geopolitical events. Michigan’s energy systems remain robust and are well positioned to meet the evolving needs of consumers in the state, though we are not immune to
global disruptions and pressures."
