In rare shift, local gas prices are cheaper than in Minnesota
 
By Patrick B. Anderson | Winona Daily News | Posted: Sunday, May 23, 2010 12:15 am

Bud Sobotta of Bluff Siding, Wis., gets gas Friday afternoon at the Kwik Trip at Broadway and Mankato Avenue in Winona.

Mike Collins often crosses the river into Minnesota to buy gas. He sometimes even drives 45 minutes to Lansing, Iowa, to fill up his tank. Both states normally have lower prices than in Wisconsin, at times as much as 20 cents cheaper.

But Collins, who owns TCs Auto Repair in La Crosse, for now doesnt need to go to a different state. Im glad to see it come down, he said. I think from an economic standpoint its good.

Gas prices in the La Crosse area dipped below prices in neighboring Minnesota communities Thursday and remained at comparable lows through Saturday.

The average cost per gallon in La Crosse was $2.648, compared with $2.699 in Rochester, Minn., according to AAA data. But Minnesotas state average remained about 5 cents less than Wisconsins.

Many stations in La Crosse had a posted price of $2.599 Saturday, about a 30-cent drop from about two weeks ago. This comes on the heels of Memorial Day weekend, the unofficial start of the summer travel season that usually triggers a rise in prices at the pumps.

La Crosse continued Saturday to have the lowest average price in Wisconsin, while Eau Claire only about 60 miles to the north was the highest at $2.818.

Lower state taxes on gasoline usually keeps prices down in Minnesota. Residents now pay 27.1 cents a gallon in state taxes. The number will rise to 27.5 in July, but drivers still will pay less than Wisconsin residents who currently spend 32.1 cents per gallon on state taxes.

Crude oil prices, the strength of the dollar and distribution methods all affect the cost of gas, so determining the exact cause of the drop is difficult, AAA spokeswoman Gail Weinholzer said.

The price of crude oil fell from more than $87 a barrel three weeks ago to below $65 earlier this week, the lowest its been since July 2009.

I would guess it would have something to do with the distribution networks, Weinholzer said.

Collins said he cant figure it out. For him, cheaper gas only raises more questions.

I just have no answers for it, Collins said. Whos controlling it all?

They could fall another 10 cents or more by the Memorial Day weekend, said Tom Kloza of the Oil Price Information Service.

Pump prices fell overnight Saturday to a national average of $2.812 per gallon. Prices still are about 46 cents above year-ago levels, but the gap is narrowing quickly. Prices peaked at $2.829 a gallon May 6.

Kloza said he expects the national average to drop to about $2.77 per gallon by Monday and perhaps to $2.65 to $2.70 by Memorial Day weekend.

Prices over the summer could range between $2.50 and $2.75 per gallon, about the same as last summer, he said.

The Associated Press contributed to this story.