Why Gas is on the Rise in the Twin Cities

A regular gallon of gas costs on average about $2.317 in the Twin Cities Monday. That's up from $2.054 a month ago, and up from $1.833 a year ago at this time.

Why the rise?

According to AAA, the New Year began with increased gas prices reaching today’s average of $2.34 per gallon. The national average has moved higher for 34 of the past 35 days, largely due to market reactions to last fall’s OPEC deal.

Pump prices increased by five cents on the week, by 18 cents per gallon on the month, and are up by 34 cents on the year.

Moving into 2017, retail prices will continue to hinge on the ability of cartel countries to successfully implement production cuts, but retail averages are likely to increase leading up to the summer driving season as seasonal refinery maintenance gets underway this spring, according to a news release.

Gasoline inventories in the region dropped nearly 1 million bbl last week according to the latest EIA report. The decline can likely be attributed to lingering refinery issues, and as a result, drivers in some parts of the region are paying some of the nation’s highest averages at the pump.

Three of the nation’s top 15 most expensive markets are located in the Great Lakes region: Illinois ($2.49), Michigan ($2.42) and Indiana ($2.40).

Meanwhile, drivers in Missouri (+9 cents), South Dakota (+8 cents) and Minnesota (+7 cents) have seen prices jump seven cents or more per gallon on the week. Additionally, the largest monthly increases in gas prices are seen in Wisconsin (+29 cents), Illinois (+28 cents), Minnesota (+27 cents), Iowa (+27 cents), Missouri (+25 cents), Nebraska (+25 cents) and Indiana (+23 cents).

Quick Stats from AAA

• The nation’s top ten least expensive markets are: South Carolina ($2.10), Arizona ($2.12), Alabama ($2.13), Tennessee ($2.13), Mississippi ($2.14), Texas ($2.14), Arkansas ($2.15), Louisiana ($2.15), Oklahoma ($2.15) and Missouri ($2.18).
• The nation’s top ten most expensive markets are: Hawaii ($3.01), California ($2.76), Alaska ($2.68), Washington ($2.67), District of Colombia ($2.59), Pennsylvania ($2.57), New York ($2.52), Illinois ($2.49), Oregon ($2.48) and Connecticut ($2.47).

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