Good news. As of February 9, 2026, the average price for regular gasoline in Minnesota is $2.65 per gallon, down from $3.03 last year, roughly 12.5% less than in 2025.
Over the last 13 months, prices have declined, with a slight seasonal uptick in early February.
Last summer, prices stayed stable at $2.95–$3.05 during peak driving, then fell to an average of $2.63 as 2025 ended.
The national average is $2.90, so Minnesota is 25 cents cheaper. Duluth is still more affordable than the Twin Cities, where prices average $2.71. Prices have increased 2 cents in the past week, a typical February change as refineries prepare for the summer blend and maintenance.
Driving the North Shore in February always comes with a premium—both for the views and the fuel price. While currently lower than this time last year, gas and diesel still carry that “end-of-the-road” markup the further you go up Highway 61.
As of our deadline day, February 10, here are the gas prices along the shore. Two Harbors is trading at $2.80, down from $3.09 a year ago. Silver Bay is down to $2.89 from $3.15 in 2025.
In Grand Marais, prices are $3.05, down from $3.34 last year. This is 31 cents higher than the current statewide average of $2.74. Grand Marais typically runs 20–30 cents above the state average, primarily because of higher transportation costs to the tip of the Arrowhead.
Several things determine the price you pay at the pump for a gallon of fuel. Using data from the U.S. Energy Information Administration (EIA) and current 2026 market trends, we see that the cost of crude oil represents almost half of the price you pay. It is the single biggest cost factor. For the most part, as the price of a barrel of crude goes up or down, so does the pump price. Currently, global oil prices are declining moderately (averaging around $55–$60 per barrel) due to high U.S. production and a global surplus.
Refinery costs are about 20% of the retail price of gasoline. Refineries take crude oil and turn it into the fuel you buy. This involves their profit margins, labor, energy, and chemical processing. In 2026, even though crude prices are down, refining margins are up because several major U.S. refineries have recently closed, tightening the supply of finished petroleum.
Everybody’s favorite certainty, taxes, takes up almost as much of the retail price as refineries.
The federal highway tax, unchanged since 1993, is a flat 18.4 cents per gallon. The Minnesota tax is currently 30.6 cents per gallon. In Minnesota, roughly 50–55 cents of every gallon you buy goes straight to the government to fund roads and bridges.
Distribution and Marketing costs, between 10 and 15% of the retail price, reflect the expense of transporting gas from refineries to various regions. For example, gasoline travels by pipeline to terminals such as Duluth, and then by tanker truck to stations. Areas farther from these terminals, like Grand Marais, face higher distribution costs than cities like Duluth, contributing to higher pump prices locally. Most gas stations profit very little from fuel itself, earning only 5–10 cents per gallon after credit card fees. Instead, they rely on customers buying items in-store, like coffee and doughnuts.
There are variable seasonal and environmental factors that affect pump prices. The “formula” for gas actually changes twice a year based on EPA regulations. Summer-grade gasoline is more expensive to produce because it contains more costly additives to prevent evaporation in hot weather. Minnesota is one of the few states that opted into year-round E15 (15% ethanol) sales. While ethanol is generally cheaper than pure gasoline, the infrastructure upgrades required at refineries have added slight upward pressure on regional prices.
When you see today’s prices from Two Harbors to Grand Marais, remember we’re well below the highs set in June 2022 when the statewide average hit $4.76 after Russia invaded Ukraine. In Grand Marais, some pumps were priced at $4.99.
In May 2013, Minnesota briefly had the nation’s highest gas prices due to refinery shutdowns.
In the early 2000s, gas cost about $1.45 per gallon—about $2.65 today, adjusted for inflation. We are now close to that inflation-adjusted price for the first time in years.
