Local gas prices in Buffalo and Rochester jumped over the course of the past week with a gallon of unleaded gasoline going for $2.34 in Buffalo, up 8 cents — and $2.32 in Rochester, a 7 cent hike.
Today, the New York State average is $2.36, up 6 cents from last week, while the national price for a gallon of unleaded gas went up 8 cents from last week to $2.22 per gallon. One year ago, the national average was $2.61.
Crude oil prices are on the rise for the third consecutive week. At the same time, there is an increased demand for more gasoline. Drivers have been enjoying low prices and therefore driving more. That increased demand is pushing oil prices up. As we enter the summer driving season all eyes will focus on whether refiners can keep pace with the increase in demand. Gasoline demand continues to surpass 2015 year-to-date levels, and as more drivers take to the roads, refiners will work to increase gasoline production to levels that meet this higher demand. This likely means another higher-than-normal year of refinery runs, which can put additional strain on refinery equipment and overall operations. In preparation for the busy summer driving season, a number of refineries are reportedly ramping up production and keeping a close eye on their utilization rates.
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