How to save money on gas in the Twin Cities

Most of the time, Dave Desparois fills his tank near his job in Elk River.

“I try to get it up there because I get a little bit more bang for the buck,” said Desparois, 43, of Savage, who works on heavy machinery for Hayden-Murphy Equipment Co.

But one day last week, Desparois still found himself among the customers stopping to refuel at the Hy-Vee Fast & Fresh pumps closer to home, off Egan Drive.

He does not always remember to bring his fuel-saver card. But he knows Hy-Vee for its deals, like last season’s per-gallon credit based on the final Vikings score. He said his girlfriend saved big on that promotion while buying groceries for her two kids.

“It adds up quick. And she drives a big SUV,” Desparois said, admitting his girlfriend is the savvier fuel saver in the relationship.

Gas prices around the Twin Cities nudged up this year compared with last, outpacing national and regional averages. The latest consumer price index released earlier this month identified a 6.3% increase for all types sold, compared with the same time last year. Meantime, prices across the Midwest rose 4.9% and the national average declined 0.2%.

National petroleum and market experts from GasBuddy and AAA attribute the latest fuel price increases to seasonal economic conditions as production slows and demand rises.

Another looming factor is the potential for prices to rise if President Donald Trump imposes tariffs on energy. Minnesota, like its Midwest neighbors, relies on Canadian oil for gasoline production.

Experts say some of the best ways to save at the pump are keeping tabs on the rewards benefits and price changes — and finding ways to use less gas altogether.

One great way to find significant savings on gas is through reward stacking, said Ted Rossman, a senior analyst for Bankrate.

Warehouse club cards — like Sam’s Club and Costco — offer some of the best gas rewards across their locations, Rossman said.

With nine locations in the Twin Cities, for example, Sam’s Club touts its 5% cash back for all fuel purchases. It also doubles as a club card.

But finding the best card should always come down to “knowing your spending habits,” Rossman said, and matching those habits with the right cards.

The average household spent about $2,449 on gas in 2023, according to a recent Bureau of Labor Statistics report. Rossman noted many cash back rewards cap out around $6,000 per year.

Getting a gas card can be a good start, Rossman said, and combining those rewards with other offerings is better. Options include using gas station mobile apps that offer discounts and charging the gas purchase with a card that earns rewards.

Rossman stressed that paying in full while using credit card rewards is necessary to get the most out of the deal. Also: the gas-station branded credit cards do not always offer the best return.

A good rule of thumb is to pick a card that offers rewards as a percentage, rather than one with a cents-per-gallon discount.

“Especially as prices rise, this becomes more relevant,” Rossman said.

Over the next month or two, prices will rise as refineries around the country — from southern to northern regions — perform maintenance, ramping down production while demand ticks up as consumers start to get out more, said Patrick De Haan, a petroleum analyst for online price tracker GasBuddy.

Those rising prices usually will last through mid-April and then top off around mid-May, De Haan said, as the ballpark increase for this season falls between 20 and 65 cents per gallon. In the Twin Cities, that could mean gas prices reaching the middle or upper range past $3.

For the most part, prices in the Midwest are lower than the West Coast and higher than in the South.

Satyam Panday, chief U.S. and Canada economist at S&P Global Ratings, said regional variations in gas prices ultimately depend on how different parts of the country source oil. Minnesota relies on crude oil from Canadian tar sands, which will mean higher gas prices under Trump’s proposed tariffs.

“In general, depending on how the refineries are doing in those particular regions, that’s what really leads to the differentials in the regional prices,” he said.

For now, De Haan said the price increases we are seeing are not a result of federal policies on trade — it’s a result of simple economics. If tariffs do come into play, though, he said those could add 20 to 35 cents on top of the other predicted rise this year.

“That’s something we’ll be watching out for. But I still do believe the seasonal forces are stronger than the impact from tariffs,” De Haan said.

“Bottom line to motorists is: Be prepared for the seasonal rise,” De Haan added.

Not talking about the automated kind. Safer — and smarter — driving does more than get you from points A to B in one piece. It saves money, according to experts.

According to the U.S. Department of Energy, aggressive driving significantly lowers fuel economy. On the highway, efficiency can drop off by 30%, and tacks up for every 5 mph driven past 50 mph.

Top tips for the daily commute that AAA recommends:

Emma Nelson of the Minnesota Star Tribune contributed to this story.