SuperTalk Mississippi

The Reason You’re Paying $3.26 for Gas: Ethanol Prices Have Jumped

JACKSON, Miss.–Today you’re paying $3.26 on average for a gallon of gas in Mississippi. It’s been increasing over the past few weeks and oil expert Trilby Lundberg said this weekend that the big problem this time is an increase in the price of Ethanol.

Today you won’t find gas any cheaper than $3.12 in the state, according to Stations in Meridian, Southaven, Magee, Philadelphia, Pearl and Brandon have it for $3.12.

The most expensive is in Hernando, where one station has it for $3.69. Nationally the most expensive in in Los Angeles, at $4.

“The increases that we’ve seen over six weeks are slowing,” said Lundberg. “This is a total of 26 cents up, but this is the smallest of three hikes.”

She said there have been “supply dislocations” in the U.S. Ethanol market.

“Because of rail car availability and there are international aspects for the Ethanol market. Combined, this has moved Ethanol prices up 54 cents in the past two weeks, and at a 10 percent blend with gasoline, that is a nickel.”

And she said that it could have been an even bigger jump in prices.

“If crude oil prices had not slipped in this period, than instead of seeing Ethanol’s add on price of a nickel at the pump, we would have seen more.”

Now the ball is in the court of crude oil prices, she said.

“If they do nothing from here, we may see another two, three or four cents at most. Maybe, soon, the price would actually peak.”

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