Tuesday, June 10, 2008

Gas Prices

No one has been happy about gas prices recently. But today, I read something that made me happy... at least for a few minutes.

Why is gas so cheap in Missouri?
Click on the title above to read the complete story.

While the average gas price nationwide passed $4 last weekend, Missouri could boast of prices around $3.825, the cheapest in the country. How come the Show Me State has the lowest gas prices?

Taxes, pipelines, and ethanol. State gas taxes—which are assessed on top of the federal rate of 18.4 cents per gallon—tend to get the most attention in comparisons of fuel prices across states. At 17.6 cents per gallon, Missouri's gas taxes are low, but they aren't quite as low as some other states'. New Jersey, for example, takes just 14.5 cents per gallon, but its prices remain more expensive than Missouri's. (The Garden State's ban on self-service pumps adds an estimated nickel or so per gallon to the retail price.)

In Missouri, geography helps keep prices low. The state doesn't have any oil refineries, and its share of U.S. crude oil production is so small that the Department of Energy reports it as 0 percent. But because of its proximity to Texas, Oklahoma, and the Gulf Coast states, Missouri is crisscrossed by some of the nation's larger pipelines. Oil barges also pass through the state on the Mississippi and Missouri rivers. Proximity to producers reduces transportation costs a little, but it also makes Missouri less susceptible to price spikes when individual refineries run into problems......

I'm glad I don't have all that far to drive, and that since I have a newer car is gets good mileage. I hope someone figures out something soon, cause we all know it's just going to get worse.

PS: I will be with my family in about 25 hours!


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