TheManeater.com - Gas Prices in Missouri Lower than Elsewhere

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TheManeater.com - Gas Prices in Missouri Lower than Elsewhere

Ninth district candidates agree that ethanol is not a long-term solution.

Missouri boasts some of the lowest gas prices in the country, and Columbia is no exception.

The average price of gas in the United States currently stands at $4.108 per gallon; in Columbia, prices are holding much lower at about $3.89. Proximity to pipelines going through Texas, a state mandate requiring gas to contain ten percent ethanol and low gas taxes compared to other states can be credited for comparatively cheap pump fares.

Despite recent drops in oil barrel prices after the holiday weekend, gas prices are not decreasing, and the economy continues to worsen. Local businesses have been managing to stay in control of the situation, though.

Jerry Dowell, campaign manager for Blaine Luetkemeyer, who is running for representative of Missouri's Ninth Congressional District, said he characterizes Columbia as a city that, because of the diversity of its industries, is not as susceptible to certain downturns. The question, he said, is how long that will last.

Lakota Coffee Company, in downtown Columbia, has seen a 10 percent sales drop, according to manager Andrew DuCharme.

"It's nothing to put us out of business, but we feel it, definitely," he said. "Trust me, we feel it."

DuCharme said he feels his business is faring average compared to others.

"People are buying a dollar cup of coffee instead of a three dollar latte coffee and then putting that two bucks into the gas station. But more people still buy the coffee so we're still seeing revenue come in," he said.

Ducharme said revenue has decreased in recent months, and the store has been making small changes like switching paper brands and cutting down on deliveries. The biggest change, he said, is using less electricity.

DuCharme said he feels the only way for business to improve is for gas prices to decrease, but he said remains skeptical as to whether using more ethanol, a form of alternative energy, is the answer.

At Columbia's Head Motor Company, General Sales Manager Steve Rennells said he shares this skepticism.

"I don't see ethanol maybe being the answer," Rennells says.

Others running for the Ninth District seat, such as Marion County Presiding Commissioner Lyndon Bode and State Rep. Judy Baker, D-Columbia, agree. Baker considers ethanol as "one of those parts of a portfolio of new energy sources" and both Luetkemeyer and Bode agree that ethanol is part of a comprehensive energy plan but not a long-term solution.

James Kaufman, Project Manager of the Economics & Management of Agrobiotechnology Center, said he recognizes the debate, and agrees that ethanol is not a viable answer to the energy crisis.

"While it's beneficial in terms of energy content, it's not a perfect benefit, it's not 100 percent," Kaufman says.

Since most ethanol is produced from corn, and there is currently a corn shortage, Kaufman said corn ethanol is not the answer. Though ethanol is better for the environment, he said, it takes petroleum to create ethanol, so it almost balances out. But despite lower prices for ethanol, Kaufman said he doesn't like it.

"I don't want ethanol in my gas tank because it's less gas mileage," Kaufman said.

Kaufman said he is relying on future technology and basic supply and demand to solve the problem as opposed to ethanol.

"High prices solve themselves, so if prices get high enough someone's going to have the technology that solves the problem," he said.

Rennells' car dealership, which sells mostly Kia automobiles but also used cars, has been doing better in new car sales than ever before in the last few months.

"Well, actually, it's (higher gas prices) probably increased our business in the long run because practically every new vehicle we sell gets excellent fuel mileage." Rennells said.

City of Columbia Public Works spokeswoman Jill Stedem said Columbia's use of the bus has increased 16 percent in the last year, and school shuttles in particular have seen a 40 percent increase.

Stedem said Columbia would like to add buses to serve more riders, but cannot due to high gas prices and low fares.

Karl Kimbel, owner of Klunk Bicycles and Repair, said he has seen more sales across the board. He attributes the spike in repair requests to people digging up old bikes to ride again.

"There are a lot of folks that are looking into bikes as a possible mode of transit," Kimbel said. "We live in a total car culture. It's hard for some people to think outside of the box."

The Columbia Police Department has also felt the effects of the rising prices.

In the last six months, gas prices at fleet vehicle pumps have jumped from $2.52 on January 1 to $3.47 at the beginning of July.

This has not impacted the department's ability to patrol effectively, CPD Lieutenant Dianne Bernhard said.

"At this point we haven't given our officers any direct rule to patrol less. Asking the officers to patrol less isn't really an option," she said.

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