What’s in a gas price? AAA rep shares insight

SIKESTON — Despite the fact gas prices have plummeted to their lowest level since January, some Sikeston residents believe their gas prices are still excessive.

With Missouri’s cheapest stations recently priced at an average of $2.79 a gallon, other stations in Southeast Missouri are now charging the same price.

People in Sikeston were paying $3.39 per gallon on average a month ago, whereas in Charleston, Cape Girardeau, Dexter and even only six miles south of Sikeston on Interstate 55, Matthews exit, gas station rates were $2.99 per gallon, about 40 cents less than some Sikeston stations.

While gas prices across Missouri have also fallen in recent weeks, Sikeston residents have noticed for some time that many of the surrounding towns’ fuel costs have been lower than Sikeston’s, and citizens in Sikeston want to understand why.

According to Nick Chabarria, a spokesperson for AAA Missouri, the average price for regular unleaded fuel in Scott County is $3.02 per gallon, and the average price for regular unleaded in New Madrid County is $2.91 per gallon.

While only gas station owners can speak for their pricing, Chabarria said the Energy Information Administration, or EIA, outlines a number of factors that influence regional pump price differences, and that some of those factors may also be influencing Sikeston gas prices.

“Distance from supply and retail competition and operating costs play the main two factors when comparing gas prices at stations in neighboring towns,” Chabarria said. “According to the EIA, retail gasoline prices tend to be higher the farther the gasoline must be transported to the point of sale because transportation costs increase when that distance increases. Supply sources include refineries, ports, and pipeline and blending terminals.”

In addition, Chabarria said prices at gas stations are often highest in areas with fewer gas stations.

“Even stations located close together may have different traffic patterns, rent and sources of supply that influence pricing,” Chabarria said. According to Chabarria, a city government has an impact on fuel prices only when it imposes a motor fuel tax in addition to the state and federal fuel taxes on motor fuel sold within city limits.

“However, this is rare and Sikeston does not have a city fuel tax,” Chabarria said. “Fuel prices that motorists pay are ultimately set by gas stations.”

Chabarria said according to the EIA, the factors that influence what motorists pay at the pump are crude oil prices (57.1%), refining costs and profits (17.7%), federal and state taxes (12.8%), and distribution and marketing costs (12.4%).

Consumers who believe businesses are engaging in unfair pricing practices, according to Chabarria, can file a complaint with the Missouri Attorney General’s Consumer Protection Division.

For more information on daily price averages, visit https://gasprices.aaa.com/?state=MO.

Phone messages left Tuesday, Dec. 5 by the Standard Democrat at Rhodes and Loves headquarters were not returned as of press time.