Today’s national average price for a gallon of gasoline is $4.97, up 10 cents since Monday. One year ago, the price was $3.07. The New York State average is $5.01 ($5.009 to be exact), up 13 cents since Monday. A year ago, the NYS average was $3.09. AAA Western and Central New York (AAA WCNY) reports the following averages:

  • Batavia – $4.90 (up 15 cents since Monday)
  • Buffalo – $4.89 (up 17 cents since Monday)
  • Rochester – $4.95 (up 16 cents since Monday)

Motorists are feeling pain at the pump even with the recent New York state gas tax cap. When it went into effect last week, statewide prices did drop initially as nationwide prices increased dramatically. However oil prices continue to increase, and the gas tax relief doesn’t amount to enough to counterbalance the increased price of oil, which has a direct impact on what we pay at the pump for gasoline. 

For example, right now oil prices range from $121 to $123 per barrel, up from $120 per barrel on Monday. Oil accounts for at least half of each gallon of gas. 

Given that gas taxes make up less than a fifth of the price consumers pay at the pump, removing it offers little margin for price decreases when compared to the other factors that contribute to 85% of the price paid by consumers at the pump. Moreover, when external market and economic factors impact the price of oil, rising crude prices can often play an outsized role in pushing pump prices higher. As a result, the impact of gas tax holiday proposals can be limited because any price reduction from the lack of taxes can be quickly offset by a steady increase in oil prices, which is what we are seeing now.

All WNY is made possible thanks to coffee and sleep deprivation.
Buy us a cup? (of coffee, we can handle the sleep deprivation ourselves)

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