Michigan drivers are getting a slight break at the pump this week, as gas prices dropped 11 cents per gallon, according to AAA-The Auto Club Group. The statewide average for regular unleaded now stands at $4.16, down from last week and a month ago, though it remains 85 cents higher than the same time last year.

"Gas prices are lower to start the week, providing some welcome relief for drivers. However, ongoing market volatility means prices could continue to fluctuate," said Adrienne Woodland, spokesperson for AAA-The Auto Club Group.

At the current price, motorists are paying about $62 to fill a 15-gallon tank, which is roughly $11 more than the highest price reported last August, according to AAA.

Metro Detroit and Regional Averages

In Metro Detroit, average daily gas prices dipped slightly, with drivers now paying around $4.21 per gallon — about 2 cents less than last week's average but still about 91 cents more than this time last year, according to AAA.

The most expensive averages reported by AAA this week are in Ann Arbor ($4.25), Metro Detroit ($4.21), and Jackson ($4.15). The least expensive are in Flint ($4.06), Grand Rapids ($4.08), and Saginaw ($4.08).

Supply and Demand Data

Domestic gasoline supply increased from 208.7 million barrels to 209.4 million, according to new data from the Energy Information Administration (EIA). Gasoline demand decreased from 8.96 million to 8.68 million, while gasoline production increased last week, averaging 9.7 million barrels per day.

Labor Day Outlook

Gas price analysts from AAA and Gas Buddy note that prices remain volatile and are not usually this high in late summer. If current trends hold, the national average price of gasoline on Labor Day will be above $4, which Gas Buddy's analyst Patrick De Haan said would be a record high for that holiday.

Factors Behind Price Differences

One reason prices vary from state to state is how state gas taxes are calculated. Some states temporarily halted the collection of state gas taxes due to high oil prices this spring and summer. Michigan still collects state gas taxes but revoked the annual requirement for a summer blend of gasoline in Southeast Michigan, a step intended to help prevent smog.

AAA issues gas price trend reports on Mondays and maintains a gas price database that is updated daily.