Gasoline prices averaged $3.802 a gallon in the Detroit-Ann Arbor-Flint area in March 2013, the U.S. Bureau of Labor Statistics reported today. Regional Commissioner Charlene Peiffer noted that area gasoline prices were down 12.5 cents compared to last March when they averaged $3.927 per gallon. Detroit area households paid an average of 15.5 cents per kilowatt hour (kWh) of electricity in March 2013, virtually unchanged from 15.4 cents per kWh in March 2012. The average cost of utility (piped) gas at 90.4 cents per therm in March was down from 95.6 cents per therm a year earlier. (Data in this release are not seasonally adjusted; accordingly, over-the-year-analysis is used throughout.) 

At $3.802 a gallon, gasoline prices in the Detroit area were similar to the $3.792 national average in March 2013. A year earlier, consumers in the Detroit area also paid similar prices for a gallon of gasoline compared to the national average. In fact, the local price of a gallon of gasoline has been comparable to the national average in the month of March in each of the past five years. (See chart 1.)

The 15.5 cents per kWh Detroit households paid for electricity in March 2013 was 21.1 percent more than the nationwide average of 12.8 cents per kWh. Last March, electricity costs were 21.3 percent higher in Detroit compared to the nation. (See chart 2.)

Prices paid by Detroit area consumers for utility (piped) gas, commonly referred to as natural gas, were 90.4 cents per therm, or 9.1 percent below the national average of 99.4 cents in March 2013. A year earlier, area consumers paid prices comparable to the nation for natural gas. Over the past five Marches, the per therm cost for utility (piped) gas was at most 12.8 percent less in the Detroit area compared to the U.S. average (March 2009). (See chart 3.)

The Detroit-Ann Arbor-Flint, Mich. Consolidated Metropolitan Statistical Area (CMSA) covered in this release is comprised of Genesee, Lapeer, Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne Counties in Michigan.

Technical Note

Average prices are estimated from Consumer Price Index (CPI) data for selected commodity series to support the research and analytic needs of CPI data users. Average prices for electricity, utility (piped) gas, and gasoline are published monthly for the U.S. city average, the 4 regions, the 3 population size classes, 10 region/size-class cross-classifications, and the 14 largest local index areas. For electricity, average prices per kilowatt-hour (kWh) and per 500 kWh are published. For utility (piped) gas, average prices per therm, per 40 therms, and per 100 therms are published. For gasoline, the average price per gallon is published. Average prices for commonly available grades of gasoline are published as well as the average price across all grades.

Price quotes for 40 therms and 100 therms of utility (piped) gas and for 500 kWh of electricity are collected in sample outlets for use in the average price programs only. Since they are for specified consumption amounts, they are not used in the CPI. All other price quotes used for average price estimation are regular CPI data.

With the exception of the 40 therms, 100 therms, and 500 kWh price quotes, all eligible prices are converted to a price per normalized quantity. These prices are then used to estimate a price for a defined fixed quantity.

The average price per kilowatt-hour represents the total bill divided by the kilowatt-hour usage. The total bill is the sum of all items applicable to all consumers appearing on an electricity bill including, but not limited to, variable rates per kWh, fixed costs, taxes, surcharges, and credits.  This calculation also applies to the average price per therm for utility (piped) gas.

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