MINNEAPOLIS (WCCO) – When it comes to Wisconsin and Minnesota there are plenty of border battles. Vikings vs. Packers, of course, but also things like who has the higher gas prices.
Usually people fill up in Minnesota before heading to Wisconsin. But on Tuesday, AAA said the average price of a gallon of gas in Minnesota is $3.89 — and in Wisconsin it’s $3.96.
And that small price gap is even smaller along the border.
Terry Neff lives in Wisconsin and works in Minnesota. He buys a lot of gas, and uses an app on his phone to track prices, which used to be cheaper in Minnesota.
“It was about 10 cents cheaper,” he said. “So I buy my gas over in Minnesota, instead of here in Wisconsin, since I’m a Wisconsin resident. I’ll save myself, you know, 10 cents a gallon, this truck here takes a little bit of gas, so it might save me about $10 bucks in gas.”
But that price gap is closing. The gas tax difference between the two states is less than 5 cents a gallon, so gas retailers in Wisconsin may be forgoing a little profit to increase the volume of their sales.
And stations on both sides of the border may be “playing chicken” with the $4 barrier – seeing who will go there first.
“When you’re sitting at $3.95, $3.89, it looks more competitive to your neighboring state than it would if you are in the $4 range,” said Lance Klatt, of the Service Station and Convenience Store association.
The gas station association says retailers don’t like high prices any more than drivers do — and it increases the number of drive-off incidents.