Less pain at the pump: Minnesota gas prices fall
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Minnesota drivers are feeling more relief at the pump this month as gas prices fall across the state.
Driving the news: The average price per gallon of regular gas in Minnesota hit $3.68 last week, per the U.S. Energy Information Administration, down 20 cents from Aug. 22, and more than $1 from peak prices in June.
Why it matters: Falling prices nationwide are alleviating some of the summer's inflation-driven pain, Axios Markets co-author Matt Phillips writes.
- According to AAA, the national average for a gallon of regular gas was $3.74 on Friday, more than 25% lower than the June peak.
Flashback: On June 13, the average price of a gallon in Minnesota hit $4.75.
Zoom in: AAA's data suggests prices remain slightly higher in the Twin Cities, where a gallon will cost you $3.70 on average.
- But several stations in Buffalo and Hastings have their gas priced around $3.05.
Between the lines: Soaring prices this summer set the stage for the cost of gas to be a top issue in the midterm campaigns, as Republicans hammered Democrats on one of the most tangible effects inflation has on voters' personal finances.
- Dropping prices could soften the blow of those attacks against President Biden and Democrats, including in top Minnesota races.
Yes, but: The prices are still a lot higher than this time last year, when EIA data shows Minnesotans could expect to fill up for under $3 a gallon.
What we're watching: Futures prices for the wholesale gasoline benchmark "reformulated blendstock for oxygenate blending," or RBOB, are down more than 10% over the last 10 trading sessions, Phillips notes.
- That suggests lower retail prices are still to come.
What's next: The next monthly Consumer Price Index report comes out this morning.
- Those figures could give a better sense of what the lower gas prices mean for overall inflation.