Fuel prices are surging in the United States, hitting highs not seen in nearly a decade and a half. The average cost of a gallon of regular gasoline now stands at $4.06, 62 cents more than just one month ago.
The price spike is due to several factors. Most notably, the Russian invasion of Ukraine is leading to reduced supply of oil and gas, as many would-be buyers are cutting consumption of Russian oil. Russia is traditionally the third largest oil supplier in the world, accounting for 11% of global production. Here is a look at the 15 countries that control the world’s oil.
Even before the outbreak of war in Eastern Europe, fuel prices were on the rise. The ongoing reopening of the U.S. economy has contributed to rising demand for fuel – and to broader inflation concerns. Meanwhile, domestic supply of fuel has been limited, as oil companies have cut investments in new wells in recent years to improve profitability.
According to data from AAA, the American Automobile Association, the average price of a gallon of gasoline in Minnesota has risen by $0.49 over the last month, the 11th smallest increase among states. As of March 7, 2022, a gallon of regular gas cost an average of $3.77 in the state, lower than the national average and 13th lowest among states.
The total price motorists pay at the pump is the product of several factors, including the price of crude oil – largely determined by global supply and demand – and taxes. The U.S. government levies a gasoline tax of 18.4 cents per gallon, while states are free to set their own gas tax rate. As of January 2021, Minnesota taxed gasoline sales at a rate of 31 cents per gallon.
|Rank||State||1-month increase in gas price ($ per gal.)||Avg. gas price on March 7, 2022 ($ per gal.)||Avg. gas price on Feb 7, 2022 ($ per gal.)|