AREA GAS PRICES BELOW REST OF STATE

Fuel prices in the Cape Girardeau area were as low as $1.17 a gallon for regular unleaded gasoline Wednesday, 30 cents below the statewide average.

Raymond McClard of Jackson, Mo., one of many customers keeping the pumps busy at Basic Fuel, 2927 E. Jackson Blvd. in Jackson, said the lower price was welcome relief after a long stretch during which prices topped $1.50 a gallon.

"It's starting to get down to a more reasonable level," McClard said.

In a spot check Wednesday afternoon of 31 gas stations in Cape Girardeau, Jackson, Fruitland and Scott City, all were selling at well below the Missouri average for unleaded of $1.47 a gallon as reported by AAA. The statewide average price in turn was 20 cents lower than the national average of $1.67.

Jim Maurer, co-owner of the Rhodes 101 Stop chain, said the explanation for the price disparity between the Cape Girardeau area and other parts of the state was simple.

"Locally it's just a good, old-fashioned gas war," Maurer said. "Prices are just staying very low at this point."

Though customers who have endured high prices for better than a year might not believe it, Maurer said that with the intense local competition "no money is being made on gas in Cape Girardeau."

Maurer said it was "totally impossible to predict" how long the prices would stay at current levels.

Though prices at all area stations checked were low compared to other regions of the state, the range was wide.

Along with Basic Fuel, the Midway Smoke Shop a short distance away down Jackson Boulevard was selling unleaded for $1.17, the lowest of area stations checked.

Scott City Texaco at 2504 Main Street in Scott City was close behind at $1.18. Supervisor Wendy Hinton said business had been brisk, especially with a competing station next door selling at $1.25.

"Basically, we're low because the wholesale price has gone down, which allows us to pass the savings on to customers," Hinton said. "We also recently re-opened after remodeling, and the low price brings people back in."

Most stations in Cape Girardeau were selling at either $1.19 or $1.25. However, fuel was significantly more expensive near Interstate 55. Stations on William Street at the I-55 intersection had posted prices of either $1.35 or $1.37.

Of the larger Missouri cities, Columbia had the highest average price at $1.48, according to AAA. Regular unleaded gasoline was being sold at an average of $1.45 in the St. Louis metropolitan area.

The state average price was down 1 cent from $1.48 on Tuesday, indicating a slow but steady drop. The price for unleaded one month ago was $1.68, while one year ago it was $1.73.

The national average of $1.60 was down from $1.70 last month and $1.66 last year.

During the summer months, wholesale prices tend to rise because of increased consumer demand, leading to higher prices at the pump. Rhodes' Maurer said wholesale costs have decreased slightly, bucking the usual summertime trend. He is at a loss to explain why.

"Some days it doesn't make any sense to us either," Maurer said.