GoodFuels

Cheap gas in Missouri

Pull out your cheap-gas-o-meter lately?  It’s pointing directly to Missouri, where gas prices are much lower than the national average.  In fact, they have the cheapest gas in the nation-and cheaper than anywhere in Canada.  Elsewhere, you can expect to spend over $4 at the pump.  Missouri?  A relatively cool $3.82.

Why the drop?  According to an “Explainer” article in Slate Magazine, part of the reason is ethanol.

Yet one piece of legislation designed to help the environment may have had the unusual effect of reducing gas prices in Missouri—at least in the short term. At the beginning of this year, the state implemented a new law requiring that all gasoline include 10 percent ethanol. With the price of crude oil rising much faster than that of ethanol, the new formulation may save consumers about 10 cents per gallon (PDF) relative to regular gas.