News Release No. 440

DEPARTMENT OF NATURAL RESOURCES SURVEY FINDS SLIGHT DECREASE IN GASOLINE PRICES BUT LARGER INCREASE IN DIESEL PRICES

Volume 33-440

Contact: Larry Archer

(For immediate release)

573-751-3807

JEFFERSON CITY, MO, OCT. 21, 2005 --- According to the Missouri Department of Natural Resources Energy Center fuels survey, on October 17, the average retail price for regular gasoline was $2.51 in Missouri, down one percent from last month, but 31 percent higher than this time last year.

During the same period, Missouri retail diesel fuel prices increased 50.9 cents to an average retail price of $3.10 per gallon. This is primarily due to lower domestic diesel supplies and production levels from the slow recovery of Gulf Coast refineries, as well as the seasonal increase in demand for heating fuels and agricultural purposes in the Midwest. Distillate stocks, which include diesel fuel and heating oil, dropped by 1.9 million barrels to 122.7 million barrels for the week ending Oct. 14.

Approximately 57 percent of Missouri households use natural gas for heat. On Oct. 19, natural gas futures closed at $13.33 per MMBtu, up 95 cents from last month and $5.93 or 74 percent higher than a year ago. Reduced gas production in the Gulf of Mexico is credited for the increase. According to the U.S. Department of Energy as of Oct.12, the current outlook for the upcoming winter (October 2005 through March 2006) yields expectations for energy expenditures for natural gas to be approximately 50 percent more than the winter of 2004-2005 for an average household.

Approximately 13 percent of Missouri households use propane for heat. The state's average retail propane price as of Oct. 17 was $1.67 per gallon, down 1.6 cents from a month ago and 21 cents or 15 percent higher than a year ago. The Department of Energy anticipates a 36 percent increase in heating costs for Midwest households that use propane compared to last winter.

The complete energy survey for Oct. 19 is available at www.dnr.mo.gov/energy/transportation/eb102005.pdf. The department's bimonthly energy bulletins are available online at www.dnr.mo.gov/energy/transportation/fb.htm.

For news releases on the Web, visit www.dnr.mo.gov/newsrel. For a complete listing of the department's upcoming meetings, hearings and events, visit the department's online calendar at www.dnr.mo.gov/calendar/searech.do.

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