What Factors Into the Price of Gasoline in Springfield, MO?

Gas prices can fluctuate up and down based on several factors throughout the year. Many factors determine how much you pay at the pump for gasoline and diesel. The next time you fill up your tank, think of these things that go into the costs it takes to drive your vehicle with regular fill-ups.

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Four Major Factors Impacting Gas Prices in Springfield, Missouri

The American Petroleum Institute lists four things that factor into the price of a gallon of gasoline or diesel:

• Global crude oil cost, 61%. This is where things like demand, geopolitics, supply chain issues, and weather all come into play.
• Refining costs, 14%. After crude oil shows up at a refinery, oil companies distill the crude oil, take out the unnecessary elements of it, and add cleansers and chemicals to it to help your vehicle run at a higher level.
• Federal and state taxes, 14%. Federal taxes on gasoline come to 18.4 cents per gallon and 24.4 cents per gallon on diesel. Missouri taxes are 22 cents per gallon on both.
• Distribution and marketing, 11%. Gasoline needs to travel through pipelines, tanker ships coming from overseas, distribution centers, and tanker trucks before it enters your gas tank. 

For example, a gallon of gasoline costs $3 in Springfield, Missouri. $1.83 of that comes from the price of crude oil. 42 cents each comes from refining the crude and taxes, followed by 33 cents for distribution and marketing. 

Because the cost of crude oil is the most significant factor, at nearly two-thirds of the price of a gallon, how much crude oil costs companies around the world have the widest impact on gasoline price. If there is a lot of supply and not enough demand for crude oil, prices could drop. If there are supply issues, like shortages from hurricanes, shipping problems, or countries shifting production and exports.

Refining costs vary by state. Summer blends of gasoline are different from winter blends, and some states have higher emission standards that require gasoline that doesn’t emit as much carbon dioxide.

For taxes, Missouri is right about average with the rest of the country. According to the AAA website, Missouri has some of the lowest gasoline prices per gallon in the United States.

The reason gas prices may differ from station to station depends on wholesale prices. The gasoline company sets the wholesale price, and then the station marks it up a certain percentage to retail.

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How to Save on Gas in Springfield, Missouri

There are some simple ways to save on gasoline costs without sacrificing comfort in your vehicle. 

Choose the best route to your destination. 

The best route doesn’t necessarily mean the shortest route. For example, you might have a route that takes 10 miles on roads that reach 40 mph. An alternate route goes on a highway that travels 12 miles with a speed of 60 mph. You might get better gas mileage on the highway versus the roads.

Watch your tire inflation.

Over- and under-inflated tires affect your gas mileage because either issue makes your engine work harder to achieve similar speeds. Over-inflated tires don’t grip the road as much, while under-inflated tires cause turning to be more difficult. Make sure you follow the manufacturer’s recommendations for tire inflation at pounds per square inch. We recommend checking your tires every time you fill up your tank.

Maintain steady speeds.

Maintain a constant speed while driving, particularly on highways. This is where cruise control is handy on flat terrain. Staying at a constant speed between 50 and 65 mph is the most fuel-efficient speed on the highway. 

Accelerate and decelerate gradually.

Hitting the gas and accelerating quickly from a complete stop shifts through lower gears rapidly, and it reduces your fuel efficiency. The reverse is also true if you suddenly hit the brakes. Instead, accelerate and decelerate gradually by waiting for the vehicle in front of you to go forward at least two seconds before starting. The same is true when traveling on roads and highways. Leave at least two seconds between you and the vehicle in front of you.

EVs and Gas

Another way to save money on gasoline is to invest in an electric vehicle. Automakers, including General Motors, are investing billions of dollars in an electrified future. Consumer Reports stated in 2020 that the total cost of ownership for EVs was around $6,000 to $10,000 less than a vehicle with an internal combustion engine. Once EVs come down in price, they will become even more cost-effective when you recharge your EV at home overnight.

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Fuel-Efficient Vehicles for Sale in Springfield, Missouri

Our top car dealership in Springfield, MO, carries several new fuel-efficient vehicles on our lot along East Independence.  If you have questions, feel free to contact us or call (417) 763-6811.