Price at the pump seeing steady drop

Demand tends to slow after Labor Day

photo

MaryAnn Podrasky takes advantage of des-cending gas prices at Fastgas on Mitchell Avenue Monday afternoon.

Gas prices in St. Joseph took another downward turn this past week at $2.13 per gallon while Missouri continues as the cheapest gas price state - resting at $2.19 on average.

Mike Right, American Automobile Association vice president of public affairs, said gas prices have steadily declined by 10 cents since mid-September when the average gas price in St. Joseph was around $2.25 and statewide it was about $2.28.

He said gas prices statewide also have been on an almost steady decline statewide since June 20 when Missouri gas prices averaged $2.51 a gallon.

"Demand for gas usually falls off after Labor Day, so prices also fall as well," Mr. Right said. "How low will it go? Who knows - a lot of that will depend on what happens that can affect crude oil. Most of the time we don't see prices start going up again until around March."

Not only is it a savings for those at the pump, but all taxpayers as well.

Nasser Memarian, director of transportation of the St. Joseph School District, said this school year officials budgeted to spend about $506,000 for gas at about $3 per gallon. When gas goes below the expected amount, the district saves the difference and includes those savings in the next year's budget.

Last year the district budgeted roughly $1 million for gas, but spent $490,000 - less than half the budgeted amount for about 200,000 gallons when gas at one point dropped to less than $2 a gallon.

"We're only two months into the school year to tell what kind of savings we may have this year," Mr. Memarian said. "We'll probably be able to tell more around March or April."

According to the AAA, nationwide gas prices hit $2.49 a gallon, down from $3.65 at this time last year - a $1.20 difference.

Missouri is the cheapest gas state at $2.19 per gallon followed by South Carolina at $2.25, Oklahoma at $2.27 and Arkansas at $2.29.

Nearby to Missouri, Kansas averages at $2.33, Iowa at $2.37 and Illinois at $2.50.

Ronald J. Leone, executive director of the Missouri Petroleum Marketers & Convenience Store Association, said the rise and fall of gas prices are normally affected by the price of crude oil and the time of year.

Prices generally increase in the spring/summer time, he said, when more people are traveling, and decrease in fall/winter when people take less road trips.

However, he said Missourians can expect gas prices to increase at times - especially if as the economy improves.

"We're pretty fortunate. Missouri tends to be 10 to 30 cents below the national average and we have a lower fuel tax than our border states," Mr. Leone said. "But there are circumstances beyond our control that can affect fuel prices."

Jeff Schmucker can be reached

at jeff.schmucker@npgco.com

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Timothy_Dike says...

And yet gas is only 2.04 in South KC right now. Why does it take so long for the price to adjust here? There are only two places to get gasoline in the area and local stations here in St. Joe are paying the same retail that they are in KC.

September 29, 2009 at 11:57 a.m. ( | suggest removal )

WhoisJohnGalt says...

Wait a second, when everyone's price is the same people cry "collusion!" Are you SURE they are paying the same? Including transportation charges to St. Joe? Volume discount? There are many facets that make up the retail price of any product.

September 29, 2009 at 12:49 p.m. ( | suggest removal )

Eric says...

www.fuelgaugereport.com

My goodness! Consider yourselves fortunate back there; in California the average gas price is currently over 90 cents per gallon higher than in Missouri. That makes a tremendous difference in how much gasoline is actually getting into your tank.
Some of the current energy buzz is a weak El Nino in the eastern Pacific, meaning historically frigid winters in the northeast and a resulting higher demand for home heating oil. Will this push energy prices up significantly? I don't think it's going to be too bad. Weak economy, crude oil staying below $80 per barrel for 6 more months, I'm thinking.

September 29, 2009 at 4:27 p.m. ( | suggest removal )

WhoisJohnGalt says...

I agree, Eric. Everything is cheaper here than on the coasts. You folks have a LOT higher taxes to contend with than we do. Add in excessive government regulation and persistent meddling in the name of environment and consumer rights and I wonder how anyone can make a living out there. On the other hand, you have nice weather. ;)

RE: oil. It depends on when the economy picks back up again worldwide. I believe for the first time in history, economic growth will be capped by the availability of energy. A sobering prospect.

footnote, availability equals price inversely.

September 29, 2009 at 6:30 p.m. ( | suggest removal )