NEW ULM, MN — Drivers across Southern Minnesota are facing a sharp increase in fuel prices this week as the region grapples with the annual transition to summer-blend gasoline and tightening global supplies.

According to data complied by GasBuddy, an application for tracking gas prices in North America, the average price of regular unleaded in Minnesota has climbed to $3.58 per gallon, reflecting a significant 16.6-cent jump in just seven days.

While Minnesota remains slightly below the national average, which recently crossed the $4 mark for the first time in four years, the local pain at the pump has become a central topic of conversation at community hubs and service stations alike.

In New Ulm, the financial weight of these increases is felt most acutely by those operating heavy-duty vehicles or commuting from rural areas. At Kwik Trip regular unleaded at $3.89, with premium reaching $4.69 and diesel sitting at a steep $5.19. 

Local businesses such as Schaefer Companies are also feeling the pinch. Schaefer has always been a family-owned business, currently run by Willis. 

The company relies on diesel for its crane fleet and contracting work, making every fill-up a direct hit to their bottom line.

“At this point we are absorbing the cost. Let’s hope it’s a short spike in price,” Willis Schaefer said.

Trucking companies are feeling the impact even more sharply. Sean Clayton of J&R Schugel said, like all trucking firms, the company has been faced with rising fuel costs in 2026. 

The national DOE diesel average has climbed 62% since Jan. 1, rising from $3.48 to $5.64 per gallon this week.

“When diesel exceeds $5 per gallon, it becomes our number one operating cost, surpassing driver wages,” Clayton said. 

In addition, the company uses fuel optimization software to determine the most cost-effective fueling locations along each route. 

J&R Schugel purchases over 175,000 gallons of diesel nationwide each week, making fueling location decisions extremely important to controlling costs. 

Clayton said that Minnesota’s B20 diesel mandate often results in their trucks fueling either before entering or after exiting Minnesota in neighboring border states. 

“Trucking is a low-margin business, and every penny counts,” he said. “Additionally, miles per gallon (MPG) performance is typically lower with biodiesel due to its lower energy content compared to traditional petroleum diesel.”

For a standard pickup truck or SUV with a 20- to 25-gallon tank, a single fill-up now routinely approaches or exceeds $100. 

Local resident Tom Bruns said that while current prices are jarring, they are part of a broader economic squeeze.

“The gas price isn’t any worse now than what it was during COVID,” Bruns said, recalling the 2022 period when prices in some areas surged toward five dollars. “But the prices of everything else are just skyrocketing.”

Industry analysts at GasBuddy attribute the current spike to the mandatory “spring flip.” 

Refineries are currently switching from winter-grade fuel to more expensive summer blends designed to reduce evaporation in warmer temperatures. 

When combined with geopolitical instability in the Middle East affecting global crude supplies, the result is a direct hit to the local consumer’s wallet.

Despite the upward trend, savvy local drivers have noticed that prices remain in a state of flux across the city. Bruns observed that costs are currently “all over the place,” noting that if a driver is willing to look around, they might find certain areas where prices are significantly lower than the high-traffic stations in the center of town. 

These localized variations, sometimes spanning 25 to 30 cents per gallon, offer a crucial bit of relief for residents willing to go a few blocks out of their way.