Montana’s High Fuel Prices: The Effects Outside The Tank

The Rising Cost of Fuel in Montana

If you've had to "fill up" at the gas station recently then you know that the rising cost of fuel is hitting Montana pretty hard right now.

Current Gas and Diesel Prices

A quick check of AAA show that the average price of regular gas is 4.55 a gallon in Montana. Certain areas in the state are more expensive. So, what about diesel? What the average gallon for diesel is 6.23 a gallon as of this writing.

Why Diesel Prices Matter to Everyone

Now, you might be thinking to yourself I don't drive a diesel powered vehicle, so why do I care?

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Well, you SHOULD care because those Montanans who farm and ranch for a living (still among the top industries in the state) depend on diesel to run their equipment such as tractors, combines, etc. So, if they are paying more to get their product in from the fields, rest assured, you are going to pay more for that product at the store.

Yeah, so people don't think about that aspect.

The Impact of Fuel Prices on Grocery Costs

So, when you go to the store and your paying more for groceries, now you know one of the reasons why.

Understanding Fuel Price Composition

But, what makes up the price of a gallon of fuel? Well, let's take a look:

• Crude Oil Costs = 50 to 52 percent
• Refining Costs = 15 to 18 percent
• Distribution and Marketing = 14 to 16 percent
• Taxes = 16 to 18 percent

Now, folks are going to argue about this and they will throw politics in the middle of it. One side will blame the other, then that side will blame the side that blamed them. Blah Blah Blah.

The fact that Montanans are hurting is the only fact that matters.

Montanans' Struggles Amid Rising Prices

Folks are struggling to make ends meet, so when you start talking about rising fuel prices and paying more at the grocery stores, that's not the news most Montanans want to hear.

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As many struggle to pay bills, there will be things taken out of the budget due to the high cost of fuel and the ramifications that come with it.