Sep 13, 2022 - News

Less pain at the pump: Minnesota gas prices fall

Regular gasoline prices in Minnesota
Data: U.S. Energy Information Administration; Chart: Axios Visuals

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.

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.
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