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Gas prices on the move

Gas prices at these two stations, located across the street from each other, were 11 cents apart Friday evening. Several stations increased their price by a dime — or more — Friday to $1.59, after they recently dipped below $1.50 per gallon. (Julie Smith/News Tribune photo)

By Jeff Haldiman jhalidman@newstribune.com 
Published: Sunday, January 4, 2009 1:39 AM CST
With the start of 2009, Jefferson City drivers saw something they hadn't seen in several weeks: An increase in gas prices.

Around Christmas Day, local convenience stores lowered the price on a gallon of unleaded to $1.55, and a few days later, the price dropped to $1.49. But on Friday afternoon, the price at several local stations went up to $1.59.

Kerry Cordray, who works with the Missouri Department of Natural Resource's Energy Center, which monitors gas prices, said the local hike reflects is a national trend.

“We don't know how long this could last,” Cordray said.

Cordray said one contributing factor was the announcement Friday the Federal Government planned to buy 12 billion barrels of crude oil to put in the national petroleum reserve. That move was made, Cordray said, to replenish the reserve sold after hurricanes Katrina and Rita.

On Friday, crude oil prices rose 3 percent, bringing the price of a barrel of oil to $46.34. Cordray also said the current Mideast tensions may have also been a factor in sending prices upward.

According to GasBuddy.com, the average price for a gallon of unleaded in Missouri was $1.42 a gallon, the third lowest amount in the country. The lowest price in the state was $1.21 a gallon in Festus, while the highest was $1.79 in Cape Girardeau.


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ODF wrote on Jan 14, 2009 10:29 AM:

" Oil is now down to where it was when gas in JC was $1.59 or below...oil sits about $36/barrel....yet here we sit with $1.69 gas still. Only when we finally break our dependability on oil and gas will we be free of the skrewing by the oil/gas companies. "

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hdan51 wrote on Jan 12, 2009 6:21 PM:

" its a shame the owners can charge what ever they want-an owner does own several gas/convience stores less than 30 miles apart same name same owner and it can be .20 cents a gallon difference. example eldon 1.69, lake 1.59 for thier other store and also the gas
station by walmart is even cheaper yet @1.49 as of 01-12-2009 gas where i fill up?! not eldon "

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ODF wrote on Jan 9, 2009 11:00 AM:

" Oil is now back down below $40/barrel, yet gasoline remains unchanged. Isn't it just amazing how, as soon as oil rises, companies raise their gas prices....but when oil falls it can take several days/weeks for that reduction to be reflected at the pump. "

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544321 wrote on Jan 9, 2009 8:10 AM:

" Just check out our prices compared to the rest of the country at gasbuddy.com/gb_gastemperaturemap.aspx. Our gas is cheaper than 90% of the country. Be careful how much you complain about how bad you are treated by local vendors. It could be much worse. Of course part of the difference is taxes. We have the roads to show the difference in taxes too. As for the local differences, use it as an excuse to travel elsewhere. I no longer work in JC and we use every opportunity to shop in Eldon or the lake area. "

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ago151 wrote on Jan 8, 2009 7:22 AM:

" You are absolutely right, WE are our own worst enemy. I do believe in exploring other options then oil but we can not let our own supplies just sit there. I think we should drill our own but at the same time be investing in other options. Why is it 30 yrs. ago we supplied about 50-60% of our own but now it is down to 15-20%. It is not because we are out. The US has not built a new refinery in 30 yrs. Depending on others leads to allowing them to control your actions and responses, just as in life. Lets not be co-dependent on other producers. Lets be independent and free. "

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nospinzone wrote on Jan 7, 2009 10:49 PM:

" up to 1.69 now supposedl;y because US bought enough to cover reserve they used earlier last year, I think the enemy in this oil war , is our own country "

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JCpatriot wrote on Jan 7, 2009 8:07 PM:

" Correction: Ethanol "

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JCpatriot wrote on Jan 7, 2009 8:04 PM:

" No not again ! I guess its time to order a Fuel Acohol still , they cost 300. 00 kit out of State of Calif. once you have the fuel still operational it will cost 11 cent a gallon to make. Vehicles that could run on ethenol or hybird could run on acohol fuel, something everyone should be thinking about in the near future. I know I am going to get a still eventually soon... "

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boscoe wrote on Jan 7, 2009 3:38 PM:

" The ethanol mandate was only a farm subsidy and a means for certain investors to get rich quick. Ethanol is not a economically viable alternative, as it takes more energy to make the stuff than it returns when used. Despite the $0.50 a gallan state subsidy, it still costs way more than the difference it provides in MPG as compared to regular fuel.

Let the free market decide if ethanol is viable. If you took the taxpayer-paid subsidies away from the ethanol industry this afternoon, the entire industry would fold tomorrow. "

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ago151 wrote on Jan 7, 2009 2:08 PM:

" I don't appreciate choices being taken away from me for the Blunt family gain (investments, biodiesel board, ethanol plant investments). it was all under handed.
ODF: you are exactly right on the price increase and decline ratio "

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ODF wrote on Jan 7, 2009 1:40 PM:

" Oil dropped $6-$8 a barrel with NO drop in gas...it remained at $1.599, at least in this year. Yet as soon as there was RUMOR of oil increases and oil raised $6-$8/barrel, gas jumps 10-20 cents overnight.

I'm torn on the ethanol mandate because it only requires the blend when ethanol is cheaper and there is no mandate when prices or equal or ethanol is higher. The ethanol mandate is a prime reason why MO had lower fuel costs last summer when prices where sky high. What I object to is being forced to use ethanol....make it available and let folks choose if they want a cheaper/less efficient alternative. I'd rather have the $$ going to MO farmers-as-opposed-to-arab-sheiks-and-middle-east-terrorist-states. "

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ago151 wrote on Jan 7, 2009 1:22 PM:

" Well, looks like oil will close today several dollars lower due to the new oil reserve report, so lets see how long it takes for prices to drop.
I wonder if Nixon will do away with the ethanol mandate that the Blunt family had pushed through. "

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ODF wrote on Jan 7, 2009 12:57 PM:

" on-line...sorry, I wasn't trying to debate over just the article you mentioned, or the ideas in it. In general, the free market is based on competition and supposedly the more competition there is the better the services/products and the better the prices, etc.. It is the nature of competition...except when it comes to the oil companies and gas prices it seems. "

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online_editor wrote on Jan 6, 2009 4:07 PM:

" Well, just to be fair, let me state again that I've lost access to the article and I couldn't even find a for-pay copy of it, so I'm working off my recollection and can't cite who the quoted sources were. Thus, it's quite possible I may be drawing a broad generalization from some statement that was much more specific to conditions within Kansas City. In other words, I'd have to characterize my observations as theoretical for discussion purposes since I don't remember the specifics. "

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ODF wrote on Jan 6, 2009 2:11 PM:

" One other thing on-line...those 2 markets I mentioned are small enough and close enough together that competition among distributors doesn't really seem to be the factor in a 10 cent/gallon price difference. Even if competition was an issue, it's actually opposite what you would expect...that market with the least distributor competition has the lowest gas prices.
IMO, it's all about greed and what they can get away with, pure and simple. "

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oriley wrote on Jan 6, 2009 1:00 PM:

" Fulton gas stations are usually always about 5-10 cents cheaper. So it makes no sense why JC is always higher. I hardly ever buy gas here. Don't they know we have eyes, we can see a difference in the towns and pricing-HELLO! "

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ODF wrote on Jan 6, 2009 12:42 PM:

" That's true...however I am familiar with the majority of the distributors that serve the area. There's a couple of stations I'm not familiar with, that's why the question(s). But I am aware that Tipton has 2 different fuel distributors and California has at least 3 (2 of them are the same as Tipton).

Generally, the greater the number of suppliers, the more the competition and the more compeititve the pricing...at least that is the way it generally works. Without competition, suppliers are free to name their price.

But you see the point...no matter what happens, the oil companies always have a reason/excuse as to why things they are. Then as soon as things change-&-the-last reason-fails-to-explain-the-situation-they-come-up-with-another-one. "

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online_editor wrote on Jan 6, 2009 11:47 AM:

" ODF: I'm not familiar with the distributors that serve either town (note: the number of gas stations or "brands" is not necessarily an indication of how many oil jobbers there are supplying them), but I'm not sure your example disproves the theory if you look at it as part of a broader market area. Tipton may be influenced more by Sedalia, which usually has lower prices, and California influenced more by Jefferson City. And again, it's not the number of suppliers that's the key, but how competitive they choose to be, especially the top dogs. "

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ODF wrote on Jan 6, 2009 10:25 AM:

" online_editor wrote on Jan 6, 2009 9:05 AM:
About that time, the KC Star did an article, which I can't find now, that basically concluded a key factor is the amount of competition among distributors within a given area.

Online - I think this is what is most frustrating for people. There is always some excuse and that excuse(s) always changes...it's like smoke and mirrors. I think the California/Tipton situation is a prime example against the KC Star article. Tipton has 2, maybe 3 suppliers.....California has at least 3 and probably 4. You would think that more suppliers = more competition and results in lower prices. Yet Tipton has the fewest suppliers (less competition) AND the lowest-prices. "

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online_editor wrote on Jan 6, 2009 9:05 AM:

" diddo: We've yet to find a way to do that. Business practices are proprietary. It'd take trustworthy insiders volunteering information, which hasn't happened and even if it did, they wouldn't want to be cited by name, or a government investigatory agency with the power to compel testimony. Back a few years ago when AG Jay Nixon investigated, he reported he found no widespread legal violations to pursue. About that time, the KC Star did an article, which I can't find now, that basically concluded a key factor is the amount of competition among distributors within a given area. The largest supplier usually sets the pace and the others follow. If you don't have at least one substantially-sized maverick in a town, there's less downward pressure. "

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ODF wrote on Jan 6, 2009 8:39 AM:

" hasher - You cannot do without gasoline in today's society, period. You're comment is flippant and completely absurd. We aren't talking about buying wheat bread over white bread....or possibly having to go without meat until your next check. This is gasoline, it is a necessity in today's world. But please, try and let us know how that works out for you . BTW, it's not only that YOU cannot use gasoline, but do not purchase anything that has been processed, planted, picked, pulled, pushed, tugged, flown, shipped, etc., using gasoline. LOL! "

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shinymcshine wrote on Jan 5, 2009 4:50 PM:

" hasher, your analogy doesn't really hold up. A burger from one joint generally pretty different from one place to another. Gas is identical, many times coming from the same pipeline and transported on the same trucks. There's no excuse here, but there's also probably nothing you can do about it either. My solution is the same as one of the other posters. Fill up out of town at every opportunity. "

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boscoe wrote on Jan 5, 2009 4:10 PM:

" The gas is always cheaper at the little gas station (Conoco) at the Hartsburg? exit on 63 north. Ashland is usually cheaper than Jeff City. I buy most of my gas there. "

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hasher28 wrote on Jan 5, 2009 2:19 PM:

" I have no problem paying the going price for a product. If I believe the price is too high then I will not purhcase the item. Looking at most of the comments here and transferring them to other commodities one could make the argument that a burger at McDonald's is s a buck therefore every restaurant in town should only charge a buck for a burger. Hotels have different rates, should they all be the same? I realize gasoline is a necessity, but one can change their usage pattern. Perhaps the city and county would be happy to collect the same property tax from everyone. Okay folks, time to attack the messenger as that seems to elate all. "

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ODF wrote on Jan 5, 2009 10:05 AM:

" diddo - It's not just JC, but a big part of Central Missouri. The Casey's station in California is usually in line with JC prices....yet the Casey's station in Tipton (just 12 miles away and same supplier) is routinely 10 cents less than California and JC. It has nothing to do with supply/demand or cost pricing...it's all about charging what they can get away with. I will often drive to a lower priced station even if it means I end up not saving any $$ after paying for the drive because I like to reward good behavior and not encourage bad behavior. "

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diddo wrote on Jan 5, 2009 9:49 AM:

" The Trbune needs to look into why there is such pricing differences by the jefferson city area gas stations. It is outragous how they can charge such a higher rate that other parts of the state. You Know they are ripping us off. I always try to buy buy gas out of town to avoid giving the thiefs any more of my money then I can. I also allways make an effort NEVER to buy any other products from these companies. "

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ODF wrote on Jan 5, 2009 9:01 AM:

" Oil has been consistently dropping for several weeks, yet gas prices remain unchanged. Now they have one excuse after another to raise prices when there is little, if any movement, in the price of oil......govt. adding to reserves, crisis in Gaza, etc., etc..

How on earth could the govt. buying oil have any impact on the price of gasoline here? They all buy off the open market, don't they. And having gas prices over THIRTY CENTS cheaper in the St. Louis (Festus) area is just outrageous. "

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boscoe wrote on Jan 5, 2009 8:35 AM:

" They will stay down in Jeff City for the next few weeks so as to not get the attention of the returning lawmakers. "

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yamahamian wrote on Jan 5, 2009 7:54 AM:

" $1.44/gal at the Lake on saturday. Hmmmm. Filled up.

Simply amazing the split-second reaction time to a price increase, especially when compared to the lack of any movement on a downturn. "

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ago151 wrote on Jan 5, 2009 7:20 AM:

" Easy way around the JC Oil cartel? Plan your "fill ups" around your out of town trips. Don't fill up before you leave town, do it after. From my understanding, it is not the actual stations fault most of the time, they say it is their supplier. Of course they may be passing the buck as well. "

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lovemyboys wrote on Jan 5, 2009 5:54 AM:

" Columbia gas stations are the same as Jeff City (or they were this past week when we were up there). I don't understand the difference either, but I'm also not delusional enough to think gas prices are going to keep going down and stay there. When gas prices drop, they cut production and costs eventually go up again.

I'm just hoping they won't get as high as they were this summer. "

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shinymcshine wrote on Jan 4, 2009 11:49 AM:

" absolutely TRUE dinger! JC shops should be ashamed! "

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dinger wrote on Jan 4, 2009 8:42 AM:

" Just more price gouging by the Oil Jobbers and Corporate headquarters for people in and around Jeff. Funny they didn't lower prices until weeks after everyone else lowered 30 miles or more away but they raise prices before everyone else. "

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richg wrote on Jan 4, 2009 8:32 AM:

" That's bs. I've been down in southwest Missouri for the last 10 days and gas has actually gone down here. It is running $1.399 - $1.459 here. This is just the typically JC oil cartel bs. "

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