This particular article tries to explain why this is happening with Missouri as an example.
The main reasons why Missouri has some of the lowest gas prices in the country is.
1. State gas taxes are low.
2. They have a lower need in terms of volume when compared to most other states.
3. The gas mostly comes from the gulf coast regions and the shipping costs are also somewhat lower.
4. And of course the biggest reason is that ethanol is mixed in with the gas. I believe even if this is a state law there was much bellyaching about it at the time. But there must be at least a 10% mixture of ethanol in all gas sold in Missouri.
With regards to my last reason I just love how this article points out that ethanol is ten cents cheaper than the "regular" stuff. I was wondering though if the price of corn has gone up ten cents or even more and if it has the portrayal of ethanol being ten cents cheaper is a moot point now is it. Oh wait I can't wait for the expert to come out and point out that we use way more gas than we do corn in our everyday lives.
I always wonder why my first reason is almost never mentioned when it comes to the total number of news stories complaining about the high gas prices which right now is almost every day now.
I just thought this was an interesting article for several reasons but that last sentence really is another part of the problem as well.
"Given diesel's higher price, refiners almost certainly would produce more if they could, but it may take them years to build that additional capacity."
Just another part of the equation that is also not discussed very much as well. I wonder why?
Maybe because there are reasons why we haven't increased our oil refining capacity since the late 1960's.
e.g. The Clean Air Act which first became law in 1963 was amended once again in 1966, extended in 1970, and amended again in 1977 and 1990.
At least with regards to the last time it was amended it made it even more difficult for oil refineries to producer a "cleaner" burning fuel.
So whenever a person see a thirty second sound byte about why gas prices are so high they know they are not getting the full picture of what all of the reasons are right.
I would like to amend the title of the 1963 Clean Air Act. I would like to call it Cleaner Air Than it was Before Act of 1963.
It would take even more money than we are already paying to actually say that the air is clean.
Just a few things to remember about all of this. And I have not even mentioned all of the factors of why gas prices are so high in this post.
Story Here
Maybe a little latter on I will list more reason in plain English why gas prices are higher right now.
But I can guarantee that environmentalists will not like my little list one bit.
And why P is your little rant taking so long?
Because there are many pieces to the puzzle to get the complete picture of why there are higher gas prices in the first place.