Diesel Nears $7 While Unleaded Prices Stabilize
Diesel prices in Michigan are projected to reach $6.99 per gallon, according to GasBuddy analyst Patrick De Haan. This spike follows a critical power failure at an Exxon Mobil refinery in the Chicago area.
Unleaded regular gasoline in Bay County, Michigan, is currently selling for $4.99 per gallon. Diesel stands at $6.79 per gallon. Analysts predict diesel will hit $6.99 per gallon within days. This projection comes from Patrick De Haan, head of petroleum analysis at GasBuddy. The data is sourced from GN auto markets/energy: gasoline prices reports. De Haan stated the increase will happen quickly in Michigan.
Unleaded gasoline prices may have reached their peak for 2026. Station owners are resisting the push to the $5.00 mark. They are accepting lower margins to keep prices under that threshold. This strategy mirrors trends from the spring of 2026. States like Michigan and Illinois face lower price risk because they are already near the $4.99 level. Consumers in these regions are less likely to see immediate further hikes.
Refinery Power Failure Disrupts Supply
The primary driver of recent price increases is a power outage at the Exxon Mobil refinery near Chicago. ComEd, the local utility, reported that both feed lines lost power on Sunday afternoon. The refinery is losing tens of millions of dollars daily due to the shutdown. De Haan attributes two-thirds of the price spike to this local refining issue. The remaining one-third stems from geopolitical tensions. There is no evidence of intentional supply manipulation by the refinery.
Prices Expected to Ease Soon
Prices are expected to decline once the refinery resumes operations. De Haan predicts unleaded gas will drop into the $4.80s by mid to late next week. Some analysts suggest a fall to the $4.70s is possible. The timeline depends on the speed of the power restoration. Market volatility remains a factor that could alter these projections. Drivers in Mid-Michigan should monitor local station prices for changes.
Regional Price Variations Persist
Lower-priced states saw slightly higher increases than Michigan this spring. This was due to station resistance in higher-cost areas. The current situation shows similar patterns across the Midwest. Diesel remains significantly more expensive than unleaded gasoline. The $2.00 gap between the two fuels is narrowing slightly. However, diesel volatility remains higher due to its specific supply chain constraints.
