Gas prices higher in Southeast Missouri than other parts of state

The cost of a gallon of regular gasoline in Herculaneum, Jefferson County, Missouri, was $2.35 on Monday, Dec. 19. In the Northeast Missouri town of Hannibal, boyhood home of Mark Twain, the pump price was even lower: $2.32.

Patrick De Haan,chief petroleum analyst, GasBuddy.com

In Cape Girardeau, the lowest price noted by www.gasbuddy.com, $2.69, was seen at a single cash-only service station.

All other Cape Girardeau locations showed a price of $2.84 or higher.

Why does petrol seem more expensive, generally, in Southeast Missouri?

"This is exactly the kind of question I've probably heard 100 times in the last few weeks," said Chicago-based GasBuddy chief petroleum analyst Patrick De Haan.

"It simply has to do with competition. Some areas have gotten more aggressive about lowering prices. It really all depends on how often stations are checking what their competition is doing."

De Haan said all other things being equal, the business model of individual station owners is generally decisive when it comes to specific pricing levels.

"Pockets of low prices pop up where there's an aggressive station owner lowering the cost who figures to do a higher volume of business," he said, adding that some gas station groups pay more attention to local site surveys and desire to be the low-cost leader in a community.

"Some [service] stations know they're in a perfect corridor with a lot of people getting on and off the highway. If they can get you to their gasoline island by cutting prices 2 cents or 5 cents or more, the bet is they can convert you when you come inside the store," De Haan explained.

"They may take a hit on gas, but since many Americans are price-sensitive, the thinking is you'll buy a hot dog or a soda or something else that will more than compensate for the cut at the pump. Only about 30% will buy ancillary items, things other than gas, when they stop. For a gas station owner, though, it can still pay off bottom line to cut the price at the pump," he said.

What's next

"Low price pockets can move. They can and will change. Areas that are cheap right now might be considered expensive in six months. There's not much rhyme or reason to it," De Haan said.

U.S. vs. Missouri

The average U.S. per-gallon price for regular gas Monday was $3.14, 12 cents cheaper than a week ago and 54 cents less expensive than a month ago, according to auto club federation AAA.

In November 2022, the average was $3.68.

A year ago, Americans paid an average of $3.30.

Missouri's statewide average Monday was $2.71.

Local price ranges (GasBuddy)

• Cape Girardeau: $2.69 to $2.99
• Jackson: $2.59 to $2.89
• Perryville: $2.59 to $2.99
• Scott City: $2.84

Elsewhere in-state (Gas Buddy)

• Springfield: $2.44
• Columbia: $2.46
• Branson: $2.49