Tuesday, May 21, 2013

The latest local news, weather and high school sports from the Heartland

Drought could keep gas prices high
Posted: 08.20.2012 at 10:22 AM
0
Photo

KIRKSVILLE, MO -- If you have noticed a wide variation in gas prices across the Heartland, you aren’t alone.

To the surprise of many across Missouri, gas prices actually went down three cents over the last week to an average of $3.57. Missouri was one of the few states to see a drop as Iowa saw an increase of nearly two cents for an average of $3.67. This compares with the national average of $3.70, up just over two cents from last week.

Gas prices generally begin to go down as we reach the end of summer. But this summer’s drought could slow that trend heading into the fall driving season.

“We have seen the price of ethanol rise just as gas prices have risen lately. And since ethanol is in gasoline, more expensive ethanol is a contributor to higher gas prices and it’s not over yet. As we continue to progress, we continue to realize how bad the drought really is for corn. And since ethanol is made from corn, a higher corn price will make ethanol prices higher and contribute to higher pump prices,” said GasBuddy.com Senior Petroleum Analyst Patrick DeHaan.

The latest drought monitor says 61 percent of the contiguous United States faces moderate or worse drought conditions this week.  Nearly 30 percent is experiencing extreme to exceptional drought.

And with no significant long term relief in the forecast for much of the Corn Belt, high prices have the potential to last into the winter season.

Popular Stories
Thumbnail
Residents up in arms about proposed propane plant
John Garlock  |  Yesterday at 10:45 PM  |  4 comments
Thumbnail
Hannibal drug sting nabs 21
Today at 9:07 AM
Thumbnail
Mother Nature levels second building in heartland town
Kevin Puricelli  |  Yesterday at 11:26 PM
Follow Heartland Connection
Get news and weather notifications on your phone by downloading the iPhone or Android app below
Sign up to get alerts and updates for breaking news, severe weather, and deals:
submit
ADVERTISEMENT
Special Features
Senior Living
Information for you
Best Bets Auto
Auto information from our experts
Funeral Announcements
Announcements from area funeral homes
Best Bets Home & Ag
Home and Ag information from our experts
ADVERTISEMENT