Fuel Report: 2012 Gas Prices Expected to Peak on Memorial Day

While gas prices were lower this week than last throughout Oakland Township, motorists should start preparing for higher prices throughout the year — particularly over the Memorial Day holiday, one forecasting agency warns.

According to AAA, the average price for a gallon of regular gasoline in Metro Detroit was $3.45 Thursday morning, down from $3.58 a week ago and up from $3.15 one year ago.

Price forecasting agency and data provider GasBuddy.com predicts that 2012 gas prices will peak in May, with a national median price of $3.95 per gallon. The average price for a gallon of regular unleaded gas is expected to hit a new high of $4.15 to $4.50 on Memorial Day in Metro Detroit, the website predicts.

“While the 2012 outlook isn’t what I’d call rosy, we can look to Europe at their $6- to $9-per-gallon gasoline and be happy that we’re still not paying as much as some countries,” wrote Patrick DeHaan, a senior petroleum analyst for GasBuddy.com.

He cited Iran's threat to close the Strait of Hormuz, a key shipping route in the Middle East, as a major factor in pricing.

“Motorists who drive a(n) SUV may want to consider calling their banking institution and obtain a credit limit increase so they can afford this summer’s fuel expenses,” DeHaan wrote in his 2012 report.

Here are some of Thursday's prices for a gallon of regular gas at a few nearby stations, according to the AAA Fuel Gauge Report:

• Sunoco (378 S. Broadway St., Lake Orion): $3.50
• Speedway (1030 S. Lapeer Rd., Lake Orion): $3.39
• (6980 N. Rochester Rd., Rochester): $3.48
• BP (100 W. University Dr., Rochester): $3.50

Where have you seen the cheapest gas around town? Leave a comment!