Oil costs hurt most in Mississippi

Published 12:00 am Wednesday, August 12, 2009

Vicksburg has been enjoying a few months of “cheap” prices at the pump compared to fuel costs elsewhere in the state and nation, but drivers in Mississippi remain less able to cope with higher oil prices than motorists elsewhere, according to a study.

The average Mississippi driver spent $2,702 on gasoline in 2008, or 9.14 percent of per-capita income. That’s tops in the nation on an oil vulnerability survey by the Natural Resources Defense Council.

Following in the top five were Montana, South Carolina, Oklahoma and Louisiana.

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What the ranking means, in essence, is that in other states with higher per-capita incomes, families are more readily able to pay higher energy costs.

Mississippi has been graded the most vulnerable state on each of three surveys released by the nonprofit group since 2007.

In addition to per-capita income, average miles driven, state and federal fuel taxes and each state’s total of licensed drivers are factors. For gasoline, the total tax on each gallon in Mississippi is 37.2 cents. The national average is 47 cents, with the highest, 64.5 cents, in California and the lowest, 18.4 cents, in Alaska.

States were also rated on how much action each had taken to address oil dependence. Mississippi rated fourth from the bottom on the list, termed “solutions rankings,” trailing only West Virginia, Idaho and Wyoming. California led the list, followed by Massachusetts, Washington, New Mexico and Connecticut.

The study’s authors conceded gas prices exceeding $4 a gallon in some areas and income disparities relative to population in some states skewed the results. For example, fuel prices in California pushed past $4.60 at one point in June 2008, yet the state ranked only 33rd most vulnerable.

“(Mississippi) should take a look at standards for vehicles in terms of efficiency and emissions,” said Deron Lovaas, NRDC’s transportation policy director, during a teleconference as results were released Tuesday.

Lovaas predicted the burden for drivers in the most vulnerable states is “likely to be pretty large this year” despite lower oil prices compared to last year. Crude dipped to $69.45 Tuesday on the New York Mercantile Exchange after five weeks above $70. A gallon of regular gas averaged $2.64 nationally and $2.47 in Mississippi today.

In Vicksburg, prices have trailed statewide averages substantially for much of the summer, settling at about $2.29 at most stations today.

Vehicle standards were among actions taken on the state level to lessen effects of oil price fluctuations. They also included incentives for purchasing hybrid gas-electric vehicles, requirements for blending alternative fuels like biodiesel into regular fuel and overall spending on public transportation, said Bill White of David Gardiner & Associates LLC, which prepared a report in which the ratings were included.

Though licenses to blend ethanol into regular gas sold in Mississippi have doubled in two years from an expansion of allowable gas mixtures, no requirement exists for the practice.

A full report, with state-by-state rankings and analysis of measures taken by states to curb oil dependence, can be found at www.nrdc.org/energy/states/.

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Contact Danny Barrett Jr. at dbarrett@vicksburgpostcom

Most vulnerable

Mississippi, 9.14 percent of income spent, or $2,702

Montana, 8.07 percent of income spent, or $2,762.94

S. Carolina, 7.59 percent of income spent, or $2,419.61

Oklahoma, 7.5 percent of income spent, or $2,766.65

Louisiana, 7 percent of income spent, or $2,540.66

Kentucky, 6.84 percent of income spent, or $2,178.30

Texas, 6.8 percent of income spent, or $2,622.05

New Mexico, 6.79 percent of income spent, or $2,177.51

Georgia, 6.71  percent of income spent, or $2,278.92

Arkansas, 6.68 percent of income spent, or $2,089