Prices for gas hit highest level ever in St. Louis

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Prices for gas hit highest level ever in St. Louis The Associated Press Date: 05/22/00 12:25

ST. LOUIS -- A shortage of reformulated gasoline is behind a spike in the price of gasoline in the St. Louis area, which are believed to be at their highest level ever.

The average price for a gallon of gasoline Friday was $1.59 -- about a quarter per gallon more than a month ago. Last year, the average was right around $1 per gallon. Only reformulated gasoline -- a cleaner-burning fuel aimed at reducing air pollution -- is sold in the St. Louis area.

The $1.59 figure puts the price of gas in St. Louis above the national average. Mike Right of the Auto Club of Missouri said it's the highest gasoline has ever been in the region.

"It's a unique situation to have St. Louis prices higher than the national average," Right said. "Generally, St. Louis is 10 cents lower than the national average."

The high prices don't seem to faze St. Louis residents. Right said because of the nation's strong economy, most motorists don't appear to be feeling the pinch of higher prices at the pump.

"The economy is doing well, and most people are feeling good about their situation and can pretty easily absorb the extra gas prices, particularly for something they want to do," Right said. "Others have said they are going to adjust vacations by taking fewer trips or make them for a shorter duration either by a fewer days or by the distance they travel."

The rise in prices is being blamed on a lack of reformulated gasoline available for sale in the St. Louis area. As part of an agreement with the U.S. Environmental Protection Agency, the region agreed to start using reformulated gas.

It's part of an effort to reduce air pollution by 15 percent. If the reduction isn't made, the region could lose federal money for various projects, including road improvements.

John Felmy, director of policy analysis and statistics for the American Petroleum Institute in Washington, said a change in the makeup of reformulated gas is causing the shortage.

"It's a more difficult gasoline to produce," Felmy said.

The price of crude oil has been going up for about six weeks, and the industry is still trying to recover from a pipeline break, Felmy said. Both contribute to the higher prices.

"Tight supply combined with robust demand keeps prices high," Felmy said.

Curt and Jennifer Wintrode of St. Louis haven't cut back their driving. But instead of taking their Ford Contour back and forth to their jobs in Chesterfield, they've switched to their Dodge Horizon. The Dodge gets between 30 to 35 miles to the gallon, compared to the Contour's 18.

"You have to pay for it whether the prices are up or down," Curt Wintrode said. "Using the little car more is one thing we do to cut back."

http://www.kcstar.com/item/pages/local.pat,local/37747b5b.522,.html

-- Martin Thompson (mthom1927@aol.com), May 22, 2000


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