Minnesota getting break on gas price increases

There’s a bit of a disconnect between national gas prices and what’s going on in the upper Midwest.

AAA’s press release on gas prices today says the national average for gasoline is up 2.6 cents since Friday The price has risen for 27 straight days, to $3.77 a gallon, it says.

Not close to the situation in Minnesota. Late last week, the price jumped 15 cents a gallon — to $3.69, then dropped to $3.59 and over the weekend the price dropped a couple of pennies at some stations.

It’s true, the price is trending higher over the last month, but while the U.S. average has seen a steady increase, the gasoline prices in the metro have jumped, fallen back a bit, then jumped more.

Things could be worse. You could be in Wisconsin (the green line).

Check out this chart from TwinCitiesGasPrices.com (click image for more readable version).

gas_feb_2012.gif

  • Bonnie

    Paid $ 4.10 a gallon in Oregon last week. Not sure if their prices are so high because of the “we must pump it for you” rule? I hadn’t said “fill ‘er up” in thirty plus years!

  • Bob Moffitt

    There are a lot of factors in why gasoline has historically been cheaper here than in other parts of the country.

    On terms of supply and infrastructure, Minnesota has two large oil refineries supplied by Alberta Tar Sands Oil via pipeline. This is the same oil the Canadians want to ship to the Gulf coast in the controversial Keystone XL pipeline, BTW.

    The refineries, which are in the most heavily populated section of the state, likely play a role. Consider oil-rich North Dakota, which must ship its Bakken Patch crude to refineries in other states by truck or rail, then ship the refined fuel back to North Dakota. All that transportation adds costs.

    Also, all virtually gasoline in Minnesota has contained a 10 percent blend of ethanol (a state mandate), which means refineries can use less expensive, locally produced ethanol as well as oil from Alberta. The refineries used to get a nice federal subsidies for ethanol blends, but that’s all gone now.

    And then there is the issue of state taxes…

  • Robert.moffitt@lungmn.org

    WCCO-TV is doing a “Good Question” tonight on North Dakota’s oil, and why it isn’t making our prices at the pump lower.

  • jack frost

    Why do people care so much about gas prices? Just pay it and get on with life!