Gov. Whitmer Declares Energy Emergency to Lower Gas Prices After Iran War Disrupts Oil Markets

Governor Issues Executive Order Easing Fuel Regulations to Save Michigan Drivers Money

LANSING, Mich. — In response to skyrocketing gas prices driven by tariffs and the ongoing Iran war, Governor Gretchen Whitmer issued Executive Order 2026-4 on Thursday, declaring an energy emergency that will save Michigan drivers money at the pump by easing restrictions on fuel blends.

The order suspends the May 1 requirement for lower vapor pressure gasoline in Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee counties, allowing gas stations to sell higher vapor pressure gasoline which is typically 10 to 20 cents cheaper per gallon.

"These eight counties account for approximately five million Michiganders, which will translate into savings for nearly half of all drivers in the state," according to the governor's press release. "Michigan drivers outside of these areas will see similar savings because they are already permitted to sell cheaper fuel blends without seeking a waiver."

Rising Gas Prices Strain Michigan Families

The Iran war has disrupted global oil markets and shut down the Strait of Hormuz, formerly one of the biggest global shipping corridors for fuel that processed up to 21 million barrels of oil per day. As a result, gas prices have risen in Michigan to $3.89 per gallon, up from $2.99 per gallon — a spike of approximately 30 percent and the highest since the summer of 2023.

According to the administration, Michigan drivers are paying 97 cents per gallon more than this time last month and 82 cents per gallon more than this time last year.

"Right now, countless Michigan families are struggling with rising costs on the essentials, from groceries to gas," said Governor Whitmer in her press release. "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."

Executive Order Brings Michigan in Line with EPA Waiver

The United States Environmental Protection Agency has issued a temporary waiver of federal vapor pressure requirements to allow the production, distribution, and sale of different gasoline blends. Executive Order 2026-4 brings the state in line with the EPA waiver, enabling access to a broader pool of gasoline and saving motorists money.

The order also directs consumers to report potential fuel quality issues to the Michigan Department of Agriculture and Rural Development, which oversees fuel standards and enforcement. Anyone who suspects problems at the pump is encouraged to call MDARD's 24-hour hotline for reporting complaints, 1-800-MDA-FUEL (1-800-632-3835).

Broader Context of State Actions

This energy emergency order comes at a time when the state is taking multiple actions to help Michigan residents cope with economic pressures. Earlier this week, the governor also directed state agencies to assist Michigan businesses in pursuing refunds from tariffs imposed by the Trump administration that were recently struck down by the U.S. Supreme Court.

The Supreme Court's February ruling found former President Donald Trump improperly used emergency powers to enact sweeping import tariffs. The decision has opened the door for companies that paid those tariffs to potentially seek refunds, though the process is still being developed at the federal level.

Whitmer's order instructs several state departments — including Agriculture and Rural Development, Labor and Economic Opportunity, Transportation and Treasury — to assess how the tariffs affected Michigan's economy and report their findings within 30 days. State officials say ensuring access will be especially important for smaller businesses that may lack legal or financial resources to navigate complex claims.

State officials have also linked tariffs to higher consumer costs, estimating the average Michigan family paid about $1,000 more per year due to price increases.

Legislative Action Still Needed

While the governor acknowledged state leaders cannot control global energy markets, she emphasized that the executive order is one step the state can take to ease pressure on household budgets. She also called for continued legislative action to address economic challenges.

"To provide relief, I'm issuing an executive order taking a few actions with one aim: saving drivers money at the pump," Whitmer said. "This 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. Let's keep working together to lower costs and provide relief."

Similar Action Across the Region

Michigan is not alone in taking action to address rising fuel costs. Several other states have implemented similar waivers to allow access to cheaper gasoline blends amid the global supply chain disruptions caused by the conflict in the Middle East.

The EPA's temporary waiver represents a coordinated federal response to the energy crisis, acknowledging that the Strait of Hormuz closure has created significant challenges for global oil transportation. The waiver allows states that choose to implement it to provide relief to their constituents while federal agencies work to address the root causes of the energy shortage.

What Michigan Drivers Should Know

For Michigan drivers in the affected counties, the change means they can now purchase gasoline that was previously unavailable during the seasonal transition period. Higher vapor pressure gasoline typically contains a different blend of components that make it more volatile but also cheaper to produce.

Drivers in other parts of Michigan will continue to have access to these fuel blends as those areas were not subject to the stricter regulations that the executive order now lifts.

The Michigan Department of Agriculture and Rural Development continues to monitor fuel quality and availability across the state, working with gas station operators to ensure consumers receive the products they need at fair prices.

Looking Ahead

As the governor implements this executive order, she continues to advocate for broader legislative solutions to economic challenges facing Michigan families. The state legislature is expected to return from spring break next week, where lawmakers will consider various bills including proposals related to data centers, voter ID requirements, and anti-terrorism legislation.

The energy emergency order represents the state's immediate response to a growing crisis, while legislative action on budget and tax issues remains essential for addressing the longer-term economic pressures facing Michigan residents.