Pumping gas RTSA summer

Those living close to the state border have heard it before— want cheaper gas, drive to Minnesota. 

On May 17, gas prices in Minnesota averaged $2.83 a gallon, while the average in Wisconsin was $2.88 a gallon, according to a daily survey by GasBuddy. 

Why the difference? 

Gas prices are determined by four main factors — cost of crude oil, refining costs and profits, distribution and marketing, and federal and state taxes.

In 2020, the cost was determined by 43% crude oil, 25% refining costs and profits, 10% distribution and marketing and 22% federal and state taxes, according to the U.S. Energy Information Administration. 

How gas prices are determined

Information for 2020 from the U.S. Energy Information Administration. 

The difference between states often comes down to that state tax portion.

In Minnesota, the current gas tax is 28.5 cents per gallon, according to the Minnesota Department of Revenue. 

In Wisconsin, the current gas tax is 30.9 cents per gallon, according to the Wisconsin Department of Revenue.

That’s a 2.4 cent difference.



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