Michigan Gas Prices and Why They Are What They Are
Prices as of September 04, 2026, per AAA · Updated September 04, 2026
As of September 04, 2026, regular gasoline in Michigan averages $4.05/gallon (the 26th-lowest in the U.S.), per AAA — 0.02 below the national average of $4.07. Diesel averages $5.80. State fuel taxes and fees add 53.4¢/gallon on top of the 18.4¢ federal excise.
Where the $4.05 goes
| Component | $/gallon | Share | Source |
|---|---|---|---|
| Crude oil (national cost, WTI August 2026) | 2.00 | 49% | EIA |
| Federal + Michigan fuel taxes (18.4¢ + 53.4¢) | 0.72 | 18% | Tax Foundation |
| Refining, distribution, margins & embedded program costs (residual) | 1.33 | 33% | 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| State sales tax on fuel | No · repealed Jan. 1, 2026 (Public Acts 17-20 of 2025); the 6% sales tax was replaced by a higher excise |
| Cap-and-trade on motor fuel | No |
| Low Carbon Fuel Standard | No |
| State-only fuel blend | No · 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.