Gas prices have been rising for several weeks now — and it’s not like they were moderately-priced to begin with. Now, experts are saying drivers should expect even more pain at the pump later in 2022.
As of Monday, the average price for a gallon of regular gas nationally stood at $3.44, according to AAA. Minnesota’s average is right there, at $3.43. That’s an increase of eight cents in one week and 98 cents more than it cost one year ago. The last time drivers faced prices this high at gas stations was 2014.
St. Louis County in northern Minnesota currently has the cheapest gas prices in Minnesota, based on AAA estimates, at $3.27 per gallon. Scott County has the most expensive gas prices at $3.54 per gallon.
Sherburne County is around $3.53 a gallon.
Many feel the Russian invasion of Ukraine could drive energy prices to new heights.
In addition, we’re also heading into the time of the year that seasonally pushes gasoline prices up by anywhere from 25 to 75 cents by Memorial Day.
However, Minnesota Legislators are floating the idea of a summer without gas taxes. Friday, DFL Representative Dan Wolgamott of St. Cloud joined Representatives Zack Stephenson, Kaela Berg, Jessica Hanson, and Dave Lislegard in announcing a proposal to suspend the state gas tax from Memorial Day to Labor Day. Wolgamott says the bill provides financial and stress relief to Minnesotans.
“We need to suspend the gas tax to help relieve the financial stresses of rising prices and inflation,” said Rep. Wolgamott. “This proposal will ease the pressure Minnesotans are feeling at the pump without jeopardizing funds for roads and bridges.”
State Capitol Republicans were critical of the idea. Senate Majority Leader Jeremy Miller issued the following statement on Friday:
“This is just another election year gimmick from the Democrats. The best way to provide relief to Minnesotans is with permanent tax cuts that result in more money in people’s pockets every single paycheck, week after week, month after month, year after year.”
The Senate GOP has proposed using $3.5 billion of the surplus to cut the lowers income tax rate from 5.35% to 2.8%. That tax cut would be permanent and ongoing.
Republicans also want to exempt all Social Security income from state taxes, which would use $539 million of the current surplus, and also be ongoing year after year.
Minnesota’s gas tax is currently 28.5 cents per gallon. The proposal would use General Fund dollars to offset the loss in income. The Minnesota Department of Revenue reports the gas tax raised just over $207 million during the summer of 2021.