Jul 18, 2022 - News

Minnesota gas prices start to fall

Illustration of a gas pump with the hose forming a descending stock trend line.
Illustration: Aïda Amer/Axios

Minnesotans are starting to see some slight relief at the pump.

The big picture: Gas prices, a big driver of the historic inflation that has triggered rage and pain across America, are declining, Axios' Felix Salmon reports.

  • The average price of a gallon of gas in Minnesota is now about $4.50, per AAA, down 25 cents from a month ago.

But, but but: The current price per gallon remains $1.50 higher than last year.

  • That means drivers are still paying $21 more to fill up a 14-gallon tank this summer.

Driving the trend: U.S. inventories "are slowly growing, in part because of continuing releases of oil by the government from its strategic oil reserves and reduced consumption," per the New York Times.

  • But the drop in prices "could easily reverse, especially if a hurricane knocks out a refinery on the Gulf Coast, since global oil supplies remain fairly tight."

Between the lines: While the falling prices are good for consumers, wild fluctuations in price aren't as positive for the store owners, who have weathered closures and consolidation in recent years, Salmon writes.

What to watch: Whether prices rise again or continue to fall could be a key issue in the midterm elections.

Be smart: Some stations within a short drive of the metro are selling gas at less than $4 a gallon, per GasBuddy.

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