Why Gas Prices Are Now Increasing Again in Minnesota

Cold weather may be gripping Minnesota lately but it's enough to freeze gasoline prices, which are now rising again across the state. Here's why they're back increasing again.

Unless you've made the switch and are driving an electrical vehicle (EV), you're probably still used to regularly stopping by your local gas station or convenience store to fill up the 'ol gas tank. And after bottoming out last fall, prices have now bounced back up here in the Land of 10,000 Lakes.

Of course, we're used to fluctuating gas prices, right? One not-so-horrible thing about the pandemic back in 2020 was that when everything shut down-- both here in Minnesota and across the globe-- demand for crude oil fell. And so did gas prices here in the Bold North, which hit a low for that year in mid-April 2020 of around $1.65 a gallon.

READ MORE: Minnesota's Favorite Gas Station Now Has 188 Locations

Then, on the other end of the spectrum, fueled by Russia's war with Ukraine, inflation, and other factors, gas prices skyrocketed just a few years later, hitting a record high of $4.75 a gallon in the North State State on June 15th, 2022. Ouch.

And after the statewide average finally dipped below 3 dollars a gallon back in November, you might have noticed that prices are back up again across the Norh Star State. According to AAA Minnesota, as of January 8th, the statewide average price for a gallon of regular unleaded is now at $2.94 a gallon. That reflects an increase of nearly 14 cents from where prices were just a month ago. It's also 12 cents a gallon higher than prices were a year ago, in January 2024.

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Some places in the Gopher State are selling gasoline for even higher than the state average. In Minnesota's third-largest city of Rochester, for example, many stations have broken the $3 a gallon mark, and are currently selling between $3.04 and $3.09 a gallon.

So what's behind this increase? KTTC reported that GasBuddy's Patrick De Haan said that low petroleum inventories and production cuts along with the increasing price of crude oil (which is now at its highest price since October) are likely all contributing to the recent price increase at the pump.

READ MORE: This Minnesota City Has the Most Kwik Trip Locations in the State

KTTC also noted that De Haan thinks prices are likely to continue increasing in the coming months, thanks to seasonal maintenance at refineries in February and the eventual transition to summer gasoline. Possible tariffs on Canadian crude oil, which supplies much of Minnesota's refineries, could also increase prices.

Speaking of gas prices, do you remember how cheap they were when you first started driving? (What did we do with all that extra money back then?!?) Keep scrolling to take a walk down memory lane and check out the price we paid when you first got your driver's license!

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