Cape Girardeau gas, grocery prices affected by Russia and Ukraine conflict

The Ukrainian-Russian conflict has affected the world, including those at SEMO and in the Cape Girardeau community. One of the major issues facing students and community members right now is increased prices in gas and food items.

President Joe Biden announced a ban on Russian oil, gas and energy imports Tuesday, March 8. In the announcement, Biden said the move was meant to increase pressure on Russian President Vladimir Putin.

In 2021, Russia had a gross import rate of 8% in United States petroleum, and gas was their largest export to the U.S.

Cape Girardeau and other communities around the United States are seeing an increase in gas prices and food items due to the ban. According to a March 7 Associated Press article, Gasoline prices are pushing further above $4 a gallon, the highest prices since the recession in 2008.

Southeast Missouri State University interim chair of the Department of Marketing and professor of economics Willie Redmond said the Russian and Ukraine conflict is having a significant effect on the United States, and the country is now looking for other sources of oil in places such as Venezuela.

“It’s the supply issues that have been raised because the U.S. and part of Europe has stopped buying gas or oil and so forth from Russia,” Redmond said.

The United States has implemented a number of sanctions against Russia to weaken their military capabilities and remove them from the global financial system.

“If you think of the supply of what’s out there to buy is all the sudden decreased, whether that be anything, you would certainly expect the prices to go up,” Redmond said. “This big supply issue is going on when this expected demand issue is also going on.”

Gas prices affect the price of many other products because of the rising transportation costs associated with these items, including food.

“If I’m selling something and it costs me more to get my products out to market, I’m very likely to increase my prices,” Redmond said.

Senior engineering physics major Tymera Brown travels from southern Illinois to Cape Girardeau every day. She said she feels the effects of the conflict because she spends approximately 20 dollars on premium gas each day.

“I’m a commuter, so I have to travel over 100 miles there and back to get to school,” Brown said. “Gas prices have really affected my ability to get to class.”

Cape Girardeau Mayor Bob Fox said he understands the effects this conflict is having on people in the community.

Reflecting on Hurricane Katrina, Fox said gas prices rose because of the natural disaster, but fell quickly; he doesn’t expect prices to recover as quickly from the Russian and Ukrainian conflict.

“The effects of the attack on Ukraine are felt across the world and right here in Cape Girardeau. It’s not only in our wallets, but also our hearts. We pray for peace and healing for Ukraine and the world,” Fox said.

In Missouri, the average gasoline prices per gallon have risen from 3.43 U.S. dollars as of Dec. 6, 2021, to a maximum of 4.16 U.S. dollars as of March 14, 2022, according to Global Petrol Prices.

Gas prices and inflation are expected to remain high, and increase for the next few weeks and months.