Gas prices continue to go drop in Mid-Missouri
Experts: Supply and demand, refinery production, and local taxes all determine cost
Following a month of steadily dropping gas prices, gas is now $2.99/gallon in Columbia and $3.07/gallon in Jefferson City.
For the first time since January, gas had dropped below $3 in Columbia. Experts say supply and demand, refinery production, and local taxes all play a part in gas pricing.
They say the main reason for the recent decline in price is because of the switch from summer blend gasoline to winter blend gasoline.
"This time of the year, consumers are benefiting because they're using the winter blend gasoline that's made available no later than October 1st," said GasBuddy.com petroleum analyst Gregg Laskoski.
Winter blend has fewer additives and takes less time to produce, thereby making it cheaper.
Locally, state and local taxes help to determine the price of gasoline.
"If you look at your gasoline taxes, Missouri's federal, state and local combined tax is only 35.7 cents per gallon," Laskoski said. "That's well below each state north, south, east and west of you."
Laskoski says drivers should expect to see drops in gas prices for some time.
"It's been a dramatic decrease in Missouri and we expect this to continue with incremental declines essentially for the remainder of the year," said Laskoski.
Experts predict the price of gas could fall another 30 cents by the holiday season.
Find the lowest gas prices in Mid-Missouri by using the abc17news.com Gas Tracker.
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