Missouri gas prices climb past national average

The average retail price gasoline was $3.23 per gallon as of May 21 – 10 percent, or 29 cents, higher than the average price two weeks previously. The state has jumped past the U.S. average per-gallon price of $3.21 but remains below the Midwest average price of $3.32.

Missouri’s average retail price for diesel fuel as of May 21 was $2.75 per gallon, down 8 cents from a month ago and 2 percent lower than the 2006 average.

Gas prices have increased for four consecutive weeks, according to the U.S. Department of Energy, and have reached an all-time nominal high for the second week in a row.

“Very tight gasoline supplies, challenges within the U.S. refinery industry to produce sufficient supplies of petroleum products and high consumer demand are contributing to higher retail prices,” according to a DNR news release.

U.S. gasoline inventories grew by 1.5 million barrels for the week ended May 18, according to the DNR, but total domestic inventories are 11.8 million barrels lower than they were a year ago. According to a U.S. Energy Information Administration report May 23, U.S. motorists increased their daily gasoline consumption to 9.4 million barrels per day, up 2.7 percent from the same week in 2006.

One bill making its way through Congress is aimed at reducing gas prices by limiting the number of specialty blends of gas on the market. HR2493, sponsored by southwest Missouri Congressman Roy Blunt, was reintroduced May 24; 18 co-sponsors have supported it, and it is on its way to the House Energy and Commerce Committee for further consideration.

Specially formulated fuels are required by law in some communities and, when those supplies are limited, prices tend to rise quickly, according to a Blunt news release.

The bill would cap the number of specialty blends and allow communities a waiver to use conventional gas instead.

See SBJ’s June 4 issue for a Fast Facts feature on Missouri and national gas prices.[[In-content Ad]]