Michigan Governor Issues Energy Emergency Executive Order to Combat Rising Gas Prices Amid Tariff and Iran War Impact

LANSING — Governor Gretchen Whitmer has taken action to help Michigan motorists struggling with soaring gas prices by issuing Executive Order 2026-4, declaring an energy emergency and suspending fuel blend restrictions that would save drivers money at the pump.

The executive order comes as gas prices in Michigan have reached $3.89 per gallon, up from $2.99 per gallon a year ago—a spike of approximately 30 percent and the highest since the summer of 2023. According to the governor's office, 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," Governor Whitmer said in a 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. To provide relief, I'm issuing an executive order taking a few actions with one aim: saving drivers money at the pump."

The executive order suspends a May 1 requirement for lower vapor pressure gasoline in Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee counties. These eight counties account for approximately five million Michiganders, which will translate into savings for nearly half of all drivers in the state.

The order allows for the sale of higher vapor pressure gasoline, which is typically 10 to 20 cents cheaper. Areas outside of these counties will see similar savings because they are already permitted to sell cheaper fuel blends without seeking a 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.

"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)," the governor's office noted.

Tariff Impact Assessment

In addition to the energy emergency, Governor Whitmer has also signed Executive Directive 2026-2 to assess the ongoing impact of tariffs on Michigan's economy. The directive follows a request in her previous executive directive asking state departments to report on how tariffs have affected the state's industries and consumers.

Tariffs imposed by Republicans in Washington have raised costs for many sectors of Michigan's economy. Executive Directive 2025-5 asked state departments to report on the impact, and those reports revealed that tariffs increased the price of raw materials, raised production costs, and restricted market access for Michigan products.

"Some companies absorbed the costs, but many passed them along through higher prices, reduced investment, or slower hiring," the directive states. "Retaliatory tariffs from trading partners have also hurt Michigan exporters, particularly in agriculture. Michigan farmers selling soybeans, dairy, and other products abroad faced reduced demand when countries like China imposed counter-tariffs on U.S. goods, lowering farm revenues and creating uncertainty in rural communities."

For working families, the directive notes that tariffs have cost each family on average $1,000 per year. They have led to higher prices for cars, appliances, construction materials, and consumer products. U.S. consumers and businesses have borne most of the cost of these tariffs rather than foreign producers.

In a state where many households depend directly or indirectly on manufacturing and agriculture, these price increases squeezed family budgets while also threatening job stability in key industries. The combined effect has been slower economic growth in tariff-exposed sectors and added financial pressure on Michigan households already managing rising living costs.

Supreme Court Ruling Creates Refund Process

The U.S. Supreme Court recently ruled unconstitutional the tariffs imposed solely by the executive under the International Emergency Economic Powers Act (IEEPA) without Congressional action. While the administration has assured the federal courts that they have set aside the $166 billion in unconstitutional tariffs, they have yet to establish a process for returning those funds.

Any process must be accessible to all importers who have paid tariffs, including small businesses and individuals who may not have access to expensive counsel to access refunds they are owed.

"Despite the uncertainty and disruption driving up prices in our economy and the lack of any Congressional involvement, the administration has not backed down on its use of tariffs. In fact, the administration has imposed new tariffs following the Supreme Court's ruling, as well as maintaining those on steel, aluminum, and other goods. Michigan's businesses and residents will continue to pay for this costly policy," the directive states.

Economic Impact

Governor Whitmer has directed state departments to submit reports within 30 days illustrating the way tariffs have impacted Michigan industries and consumers. The reports should note significant federal policy changes that have occurred in the last 12-15 months that have impacted aspects of Michigan's economy and differential impacts on Michigan households or business communities.

"Tariffs increased the price of raw materials, raised production costs, and restricted market access for our products. Some companies absorbed the costs, but many passed them along through higher prices, reduced investment, or slower hiring," the directive states.

"Retaliatory tariffs from trading partners have also hurt Michigan exporters, particularly in agriculture. Michigan farmers selling soybeans, dairy, and other products abroad faced reduced demand when countries like China imposed counter-tariffs on U.S. goods, lowering farm revenues and creating uncertainty in rural communities."

"Recently, the U.S. Supreme Court ruled unconstitutional the tariffs imposed solely by the executive under the International Emergency Economic Powers Act (IEEPA) without Congressional action. While the administration has assured the federal courts that they have set aside the $166 billion in unconstitutional tariffs, they have yet to establish a process for returning those funds," the directive continues.

"Any process must be accessible to all importers who have paid tariffs, including small businesses and individuals who may not have access to expensive counsel to access refunds they are owed. Despite the uncertainty and disruption driving up prices in our economy and the lack of any Congressional involvement, the administration has not backed down on its use of tariffs. In fact, the administration has imposed new tariffs following the Supreme Court's ruling, as well as maintaining those on steel, aluminum, and other goods. Michigan's businesses and residents will continue to pay for this costly policy."

Gas Price Context

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.

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. Executive Order 2026-4 suspends the May 1 requirement for lower vapor pressure gasoline in Wayne, Oakland, Macomb, Washtenaw, Livingston, Monroe, St. Clair, and Lenawee counties, increasing access to less expensive gas which will save motorists money at the pump.

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

The governor's office emphasized that anyone who suspects problems at the pump is encouraged to call MDARD's 24-hour hotline for reporting complaints at 1-800-MDA-FUEL (1-800-632-3835).

Budget Implications

Governor Whitmer noted in her press release that the energy emergency order 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.

"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," she said.

The executive order aligns Michigan with the EPA waiver, enabling access to a broader pool of gasoline and driving down costs for motorists across the state. Governor Whitmer's office stated that the order comes as part of her ongoing efforts to help Michigan families cope with rising costs driven by both the Iran war and federal tariff policies.

Sources

• 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
• https://www.michigan.gov/whitmer/news/state-orders-and-directives/2026/04/02/executive-directive-2026-2-ongoing-impact-of-tariffs-on-michigans-economy
• https://www.clickondetroit.com/news/local/2026/04/02/gov-gretchen-whitmer-issues-executive-order-to-save-michigan-drivers-money-amid-rising-gas-prices/
• https://www.wnem.com/2026/04/02/gretchen-whitmer-signs-executive-order-tariff-refunds/