Gas prices continue to rise across Minnesota. Patrick De Haan with Gas Buddy says early in the pandemic oil prices plummeted, demand crashed, resulting in oil companies cutting production:
“But in the last year demand has come roaring back much faster than supply has and that in balance has pushed up the price of oil.”
De Haan says a gallon of unleaded gas rose nearly four cents last week, averaging $3.16 a gallon:
“We are stuck with these high prices and that’s why we expect that this trend would continue into the first half of the new year until production starts to get back to pre-COVID level in the second half.”
Prices in Minnesota are 9.3 cents higher than a month ago and 88.1 cents higher than a year ago. De Haan says with all eyes on the Russia/Ukraine situation, oil will likely remain north of $80 per barrel, with additional volatility.