Gas Prices Surge to $3.89 Per Gallon as Iran War Disrupts Global Oil Markets
*LANSING, MI — Governor Gretchen Whitmer has declared a state energy emergency in response to skyrocketing gas prices driven by a combination of war in Iran, federal tariffs, and supply chain disruptions. Executive Order 2026-4, issued April 2, 2026, will save Michigan drivers money by easing restrictions on fuel blends, allowing access to gasoline typically 10 to 20 cents cheaper* per gallon.
"Right now, countless Michigan families are struggling with rising costs on the essentials, from groceries to gas," said Governor Whitmer. "As governor, I can't end a war overseas or undo bad policies at the federal level that led to higher gas prices, but I will do what I can to try to give families a break."
The Crisis at the Pump
Gas prices in Michigan have climbed to $3.89 per gallon, representing a 30 percent increase from the previous $2.99 per gallon. Michigan drivers are now paying 97 cents more per gallon than a month ago and 82 cents more per gallon than this time last year.
The spike marks the highest gas prices Michigan has seen since the summer of 2023, putting an enormous financial strain on families across the state.
The Iran war has thrown global oil markets into chaos, shutting down the Strait of Hormuz — once one of the world's busiest fuel shipping corridors, processing up to 21 million barrels of oil per day. This disruption has sent shockwaves through global supply chains, with ripple effects felt at gas stations across America.
Executive Order 2026-4: What It Does
Executive Order 2026-4 suspends the May 1 requirement for lower vapor pressure gasoline in eight Michigan counties:
- Wayne
- Oakland
- Macomb
- Washtenaw
- Livingston
- Monroe
- St. Clair
- Lenawee
These eight counties home approximately five million Michiganders, representing nearly half of all drivers in the state.
The order brings Michigan in line with a federal waiver issued by the U.S. Environmental Protection Agency, which temporarily suspended vapor pressure requirements to allow production, distribution, and sale of a broader range of gasoline blends.
Areas outside these counties are already permitted to sell cheaper fuel blends without a waiver, meaning similar savings are expected statewide.
How It Works: Vapor Pressure and Fuel Blends
Gasoline vapor pressure refers to how readily the fuel turns into vapor. Higher vapor pressure gasoline is typically cheaper but is restricted during warmer months to prevent evaporative emissions that contribute to smog.
By suspending the May 1 requirement, Michigan will allow gas stations to sell higher vapor pressure gasoline that costs 10 to 20 cents less per gallon. This is a temporary measure that will enable drivers to access less expensive fuel while the EPA waiver is in place.
The executive order allows Michigan to take advantage of the federal waiver, expanding the pool of available gasoline and driving down costs for motorists across the state.
What Drivers Need to Know
Michigan drivers in the eight affected counties will now have access to cheaper fuel blends starting immediately. Outside these counties, savings are expected as gas stations can already sell the cheaper blends without state restrictions.
Anyone who suspects problems at the pump is encouraged to report complaints to the Michigan Department of Agriculture and Rural Development's (MDARD) 24-hour hotline: 1-800-MDA-FUEL (1-800-632-3835).
For those concerned about fuel quality, MDARD's Motor Fuel Quality Program provides resources and guidance on what to look for when filling up at gas stations.
The Bigger Picture: Federal Factors Driving Prices
While Whitmer's executive order provides immediate relief, the underlying causes of the price surge remain at the federal level. Federal tariffs and ongoing conflicts in the Middle East have created a perfect storm for energy markets.
Governor Whitmer noted that this situation is yet another reason the legislature needs to pass a budget that continues tax cuts for working families and retirees, delivers property tax relief for seniors, and gives Michigan families a sales tax holiday on school supplies.
The governor's comments suggest that while executive action can provide temporary relief, long-term solutions require broader legislative action and sustained support for working families.
Impact on Rural Michigan
While the executive order targets eight of Michigan's most populous counties, the impact of higher gas prices is felt statewide. Rural Michigan residents, who often rely on vehicles for work, school runs, and accessing essential services, are particularly vulnerable to fuel price increases.
For rural families in Southwest Michigan, gas prices represent a significant portion of their monthly budget. A 30 percent increase puts an enormous financial strain on households that may already be struggling with fixed incomes or multiple vehicles.
The energy emergency declaration and subsequent fuel blend restrictions represent an important step, but the full impact of global oil market disruptions will continue to be felt for months to come.
What Comes Next
The federal EPA waiver and Michigan's executive order will provide temporary relief, but the long-term outlook for gas prices remains uncertain. The war in Iran, combined with federal tariffs and supply chain issues, means that energy markets will continue to face significant headwinds.
Michigan drivers are encouraged to monitor fuel prices and take advantage of the cheaper fuel blends available under the new order. For those in affected counties, savings of 10 to 20 cents per gallon can add up significantly over time, especially for frequent drivers.
The state and federal governments will need to continue working together to find lasting solutions that protect consumers from volatile energy markets while ensuring a stable fuel supply for Michigan's economy.
Sources
- Gov. Whitmer Issues Executive Order Declaring Energy Emergency to Save Michigan Motorists Money at the Pump - Michigan.gov - https://www.michigan.gov/whitmer/news/press-releases/2026/04/02/whitmer-issues-executive-order-declaring-energy-emergency-to-save-motorists-money-at-the-pump
- Gov. Gretchen Whitmer issues executive order to save Michigan drivers money amid rising gas prices - ClickOnDetroit - https://www.clickondetroit.com/news/local/2026/04/02/gov-gretchen-whitmer-issues-executive-order-to-save-michigan-drivers-money-amid-rising-gas-prices/
- Whitmer order may drop gas prices by 20 cents in these Michigan counties - mlive.com - https://www.mlive.com/news/2026/04/whitmer-order-may-drop-gas-prices-by-20-cents-in-these-michigan-counties.html
- Whitmer declares energy emergency in effort to lower gas prices in Michigan - CBS Detroit - https://www.cbsnews.com/detroit/news/whitmer-energy-emergency-lower-gas-prices-michigan/
- Executive Order 2026-4: Declaration of State of Energy Emergency - Michigan.gov - https://www.michigan.gov/whitmer/news/state-orders-and-directives/2026/04/02/executive-order-2026-4-declaration-of-state-of-energy-emergency
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