Gas prices in Missouri remain the lowest in the country, in part because of the state’s relatively low gas tax and decreased demand due to COVID-19.
Missouri’s fuel tax is about 17 cents, according to the Missouri Department of Revenue. The fuel tax is the third lowest in the country, behind Virginia and Hawaii, according to Igentax .
Voters in Missouri turned down a proposition in 2018 to increase the fuel tax by 10 cents over four years, leaving the tax unchanged since 1996, according to previous reporting. The increase would have generated revenue for law enforcement, road and bridge construction and maintenance.
The average price of a gallon of gas in Missouri was $1.77, according to AAA. At this time last year, the price was $2.29 per gallon.
Drivers in Missouri have been paying on average less than $2 for unleaded gas during the last 242 days, the longest streak since 2005, AAA said in a news release.
The national average for unleaded fuel was $2.13 per gallon, according to AAA, with the highest state average being in Hawaii at $3.27 per gallon.
The state has maintained the lowest pump prices over the last month since prices peaked in a five-month high at the end of August, according to AAA.
Ron Leone, executive director of the Missouri Petroleum Marketers and Convenience Store Association,, said Missouri normally has lower fuel prices for a variety of reasons. He cited Missouri’s low fuel tax, the strong supply of fuel that is piped in on the east and west sides of the state and strong competition on the retail level. He also said fuel prices go down seasonally.
“Demand is typically down in the winter months but it is even lower due to caution with COVID-19,” Leone said.
Leone also said Missouri uses a “vanilla” blend of fuel, among the most common and easiest to make, which keeps prices down.
“You rarely run out of vanilla ice cream, but if you have to eat or sell butter brickle or pistachio, it is often harder to find or more expensive,” he said.
The highest average price in Missouri was in St. Louis and Jefferson City at $1.82 per gallon, while Springfield had the lowest price at $1.67.
“That means pump prices could continue to drop, though not likely to the levels we saw in April and May,” AAA Spokesperson Nick Chabarria said in the release.