time Record High After A Week Of Sharp Increases

Gas prices climb sharply in Twin Cities, Minnesota as national average creeps toward Labor Day record

Drivers across Minnesota are feeling the pinch at the pump this week, with average gasoline prices in the Twin Cities jumping 18.2 cents per gallon to $4.19, according to data from GasBuddy. The survey, which covered 1,106 stations in the metro area, also shows prices are 6.5 cents higher than a month ago and $1.18 more per gallon than a year ago.

The cheapest station in the Twin Cities was selling gas at $3.60 per gallon, while the most expensive was $4.39, a spread of 79 cents, GasBuddy reported. Statewide, prices ranged from $3.46 to $4.85 per gallon, a gap of $1.39.

Minnesota's statewide average rose 16.8 cents over the last week to $4.13 per gallon, according to kdhlradio.com, citing GasBuddy.

Nationally, the average price of gasoline climbed 2.9 cents per gallon over the week to $4.05, GasBuddy said. That figure is 92.6 cents higher than a year ago but 5 cents lower than a month ago.

Diesel nears record

Diesel prices have surged even more sharply. The national average diesel price jumped 16.6 cents per gallon over the past week to $5.584, leaving it less than 25 cents away from an all-time record high, according to GasBuddy, as reported by kdhlradio.com.

In remarks carried by both outlets, Patrick De Haan, GasBuddy's head of petroleum analysis, said gasoline, while not at record levels, is at its highest point ever recorded this late in the calendar year. He warned that Americans could, for the first time, see a national average gasoline price above $4 per gallon on Labor Day, which would eclipse the previous record of $3.83 per gallon set in 2012.

De Haan attributed the price increases to the loss of Russian refinery capacity after Ukrainian attacks knocked out multiple facilities. He noted that some oil shipments are still moving through the Strait of Hormuz, but said the dominant factor pushing prices up remains the reduced Russian refining capacity.

In neighboring areas, Wisconsin's average gasoline price rose 3.1 cents to $3.91 per gallon, while Sioux Falls saw a decline of 5.4 cents to $3.90 per gallon, GasBuddy reported.

Kdhlradio.com also reported that GasBuddy says gasoline is at its highest level ever recorded this late in the calendar year, with the possibility that Americans could see a national average above $4 per gallon on Labor Day for the first time. According to GasBuddy's Patrick De Haan, the national average could exceed $4 on Labor Day, which would be the first time that has happened, surpassing the previous record of $3.83 per gallon set in 2012.

FOX 9 noted it remains unclear how long prices will continue to climb or when the loss of Russian refinery capacity might stabilize. Both outlets attribute the sustained upward pressure on prices to continued Ukrainian attacks on Russian refineries, which have taken capacity offline.

Regional comparisons

Neighboring areas show a mixed picture. Wisconsin's average price rose 3.1 cents to $3.91 per gallon, while Sioux Falls saw its average fall 5.4 cents to $3.90, according to GasBuddy data reported by FOX 9.

What's behind the rise

GasBuddy analyst Patrick De Haan said the primary factor pushing prices higher is the growing loss of Russian refinery capacity, as Ukrainian attacks knock more facilities offline. While some oil shipments are getting through the Strait of Hormuz, that is not the dominant force propping up prices, he said.

"Average gasoline prices moved higher in the majority of states over the last week, with fewer than 10 states seeing declines," De Haan said, "while diesel surged nearly 17 cents per gallon nationally, leaving it less than 25 cents away from an all-time record high."

The national average diesel price now stands at $5.584 per gallon, up nearly 17 cents over the week and within striking distance of its record, kdhlradio.com reported.

De Haan added that gasoline, while not at all-time records, is at its highest level ever recorded this late in the calendar year, meaning Americans could for the first time ever see a national average price above $4 per gallon on Labor Day, eclipsing the previous record of $3.83 per gallon set in 2012.

Looking ahead

Neighboring regions are seeing mixed trends. Wisconsin's average gas price rose 3.1 cents to $3.91 per gallon, while Sioux Falls saw a decline of 5.4 cents to $3.90, according to GasBuddy.

Analysts attribute the recent increases to the growing loss of Russian refinery capacity, as Ukrainian attacks continue to knock refineries offline, according to both FOX 9 and kdhlradio.com, citing GasBuddy. While some oil shipments are getting through the Strait of Hormuz, that has not been enough to offset the upward pressure on prices. It remains unclear how long the climb will continue or when the refinery losses might be restored.