Minnesota gas prices are five cents away from a new all-time high
Minnesota gas prices are only five cents away from hitting new all-time highs. According to AAA, the average cost of a gallon of regular gasoline is $4.22, with prices exceeding $4.30 per gallon in Dodge and Olmsted counties.
The record price for a gallon of unleaded is $4.27, set on May 20, 2013.
Diesel prices are down 8 cents this week, costing $5.24 per gallon this week, compared to $5.32 on May 11, 2022.
Prices are high, people are heated, and things are unlikely to get better before they get worse. The Washington Timesreports that a recent analysis by JPMorgan is anticipating the national average of gas will surpass $6 per gallon by August during the summer travel season, when demand peaks.
The widespread discontent about fuel prices has prompted the Biden administration to reach out to the oil industry and ask them to restart the oil refineries that were idled during the COVID-19 pandemic and the lockdowns implemented in an attempt to stop the virus from spreading.
This begs the question: why didn’t the administration pursue this course of action a year ago, when gas prices started rising?
Since the start of the pandemic two years ago, refineries with a combined capacity of over 1 million bpd have been shuttered, Bloomberg reported. Globally, some 2.13 million bpd in refining capacity has been shut down since 2020.
In addition to the shutdown of refineries, at least two are set to be converted to biofuel production facilities to produce fuel that is compliant with California’s Low Carbon Fuel Standard, a regulation that Minnesota Governor Tim Walz is seeking to enact in our state.
Fuel companies seeking to make fuel that complies with these California fuel standards are further shrinking the refining capacity available to make traditional gasline and diesel fuel, restricting supply and putting upward pressure on prices.
From Day 1, the Biden administration’s energy policies have been designed to inhibit the supply of affordable energy, and now the administration will reap what it has sown at the ballot box in November.