Twin Ports drivers feel the financial pain at the pumps

KBJR 6 News at 6pm
Published: Mar. 7, 2022 at 7:13 PM CST
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DULUTH, MN. (KBJR) - Rising gas prices are taking a toll on wallets across the Twin Ports.

“Basically, it is ridiculous,” said Superior resident Mark Kaarto.

People in Superior filled their gas tanks Monday for $4.09 a gallon.

A price that has been climbing for the last week.

“My husband and I try to do at least three trips in every car trip we do,” said Duluth resident Jill Snickers-Nyquist. “Whether it’s grocery, gas or the pet store, we try to use our gas gallons wisely.”

Monica Haynes is the Director of the Bureau of Business and Economic Research at the Labovitz School of Business and Economics.

She said these prices are coming from two things -- already occurring inflation and the war in Ukraine.

“When gas prices increase, it usually transfers to less spending in consumer goods, less spending on dining out, especially on lower-income households. They are just not able to spend the amount they would spend on their other household budget,” said Haynes.

Haynes said prices at the pump have an immediate short-term effect on consumers, making budget adjustments to keep up, but there are also long-term financial effects to consider.

“If you are a transportation and shipping company, those are the businesses that will be most impacted,” said Haynes.

And as far as how long this could last, Haynes says it could be a while.

“It’s really hard to say how long this will happen or how long it will continue, but I don’t think it’s likely it will change course in the short term. So, I would say through summer, we will continue to see high prices,” said Haynes.

Public transit isn’t immune to these price hikes either.

The Duluth Transit Authority said they account for this in their budget, but they are watching the increase in prices with some concern.

They encourage people impacted at the pump to consider riding the DTA to offset costs.

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