Not A Typical Start To Summer – Gas Prices Falling In Minnesota

The pain at the pump is easing across the state of Minnesota. Normally after Memorial Day, there is an uptick in gas prices across the state. Summer driving and activities, road trips, and vacations usually lead to more of a demand. That's not the case this year.

Average Gas Price In Minnesota

The average gas price in Minnesota is $3.21 per gallon. That's down from $3.46 last June. The prices are expected to continue to drop, too.

Prices are expected to continue to decline.

The Associated Press is reporting that gas prices are continuing to drop due to shallow demand. In an interview with AAA spokesperson Andrew Gross, he explains that things are different now in a post-covid world.

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Why are gas prices falling?

In pre-pandemic times, demand would pick up in the summertime following Memorial Day. He says we just don't see that anymore.

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Persistent inflation has affected driving habits.

There are less people hitting the road and inflation is partly to blame. With the cost of essentials at an increase, that's leaving less money for consumers to spend. That's less trips, fewer events, and fewer reasons to be on the road.

Refinery maintenance is over, and capacity is high.

Refineries undergo seasonal maintenance in late winter and early spring. Now that the maintenance has been finished, refineries are back at full capacity, driving the price of gas down.

More fuel-efficient and electric cars could be a factor.

It's hard to get solid data on how much of an impact electric vehicles have made on the oil market, but it could be a contributing factor. Less demand means a lower price.

1 million barrels of crude oil released from the oil reserve.

The white house announce in May that they would also be releasing one million barrels of oil to help drive down prices between May and July, which has also had an effect on demand.