How to Deal with Rising Gas Prices in Minnesota

Minnesota gas prices have escalated to roughly $4.24 per gallon, but these savings hacks can help balance your budget.
Written by Drew Waterstreet
Reviewed by Jessica Barrett
Updated on Mar 23, 2023
While gas prices in Minnesota aren’t quite as high as the national average, they’re higher than any in the state’s recent history.
Gasoline has historically been an inelastic product, which means there isn’t a significant shift in demand after a price change. But that threshold may have officially broken. With gas prices in
above $4.20/gal, consumers are beginning to seek alternative solutions. 
Don’t know where to turn? No worries—we’ll cover what’s causing surging gas prices in Minnesota, plus what you can do to adapt.
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What is the average price of gas in Minnesota?

According to
, the average price for a gallon of gas in Minnesota is $4.24 as of May 2022. Fortunately, this is in the lower 20% of the price spectrum—the current national average is over $4.62 per gallon.
Now, if you drive a
high-performance car
heavy-duty truck
that requires a
different octane level
, you’ll notice slightly higher prices at the pump. Here is the fuel grade pricing in Minnesota:
  • Regular: $4.24/gal
  • Mid-grade: $4.48/gal
  • Premium: $4.82/gal
  • Diesel: $5.23/gal
Compared to prices well into the $5-$6 range along the West Coast, Minnesota prices are decent, but still remarkably high. 

Which city in Minnesota has the highest gas prices?

Across Minnesota, there isn’t a ton of variance in gas prices. Hennepin County, home to the Minneapolis &
St. Paul
metro, anchors the state average at $4.24/gal. The highest prices will be found along the north shore of Lake Superior at $4.35, while the lowest prices are on the Iowa border at $4.09/gal.
Pro Tip You’re better off biting the bullet at your closest gas station than blindly driving down the road in search of a lower price. 

Why are gas prices in Minnesota so high?

So let’s take a look at why gas prices are where they are:
  • Distribution: Locations that are more difficult to deliver to, like Minnesota's remote north shore region, are experiencing greater price hikes.
  • State Taxes: Minnesota currently taxes its gasoline at a rate of 28.5 cents per gallon, but there have been recent proposals to suspend it between Memorial Day and Labor Day to incentivize summer travel.
  • Oil Prices: Oil accounts for roughly 60% of the price of a gallon of gasoline. So when oil is over $100 per barrel, gas prices are severely impacted.
  • Supply Constraints: Russia contributes roughly 10% of the world’s oil production. So, as long as the war in Ukraine persists, the resulting sanctions and deteriorating trade agreements will continue to impact gas prices.
  • Price Gouging: It’s a little off-putting to see companies like Shell and ExxonMobil report record earnings while Americans suffer at the pump. 
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How to deal with Minnesota’s gas prices

Considering how necessary gasoline is as a method of transportation, some people have no choice but to fill up at the pump, no matter the price. But, there are better strategies than closing your eyes and praying a full tank doesn’t cost you over $100. 
Here are some actions you can take to cut back on car ownership costs and some ways to fight the good fight against big oil:
  • Lobby your representatives: Minnesota congressional representativesare considering waiving the state gasoline tax from Memorial Day to Labor Day to encourage summer travel—lobby your local leader to pass the gas tax holiday!
  • Work from home: If COVID didn’t permanently move your work to a remote environment, these gas prices might give you another chance. If possible, limiting your commute by working from home will save you gas money.
  • Use E15: In partnership with the EPA, President Biden recently announced increased access to E15, also known as Unleaded 88. You can save anywhere from 5 to 40 cents a gallon by opting for E15 at one of Minnesota’s 420 gas stations that offer it.
  • Don’t skip regular maintenance: Staying on top of your
    maintenance schedule
    is crucial to avoiding more considerable repair expenses down the road. 
  • Learn some DIY car repair skills: Instead of pushing off your oil change, learn to do it yourself—YouTube has endless videos on DIY repairs.
  • Refinance your car loan: Lower your monthly payments or renegotiate your interest rate by refinancing your
    car loan
    . Not sure how to start? Jerry offers
    refinance services
    to users who shop for insurance in the app!
  • Go electric: If you’re sick of the gas pump altogether, you can always take things into your own hands by transitioning to an electric vehicle. It only costs about $30 to $60 a month to charge your EV, and you could qualify for up to $7,500 in
    energy incentives

Save money on car insurance in Minnesota

If inflation and rising gas prices have taught us anything, it’s that loyalty comes at a cost. Without appropriate pay raises from your employer to compensate, your budget's bottom line suffers. 
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car insurance
. You could be leaving hundreds on the table if you're not
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