Refineries switch to summer blend fuel, pushing prices up

Today’s national average price for a gallon of gasoline is $3.47, up 6 cents since last Monday. One year ago, the price was $4.33. The New York State average is $3.46, up 3 cents since last Monday. A year ago, the NYS average was $4.45. AAA Western and Central New York (AAA WCNY) reports the following averages:

  • Batavia – $3.38 (up 4 cents from last Monday)
  • Buffalo – $3.36 (no change from last Monday)
  • Rochester – $3.42 (no change from last Monday)

The national average for a gallon of gasoline is on the rise. However, this price pop could be short-lived, as demand and the global cost of oil have fallen recently. Less expensive oil and fewer people fueling up usually equate to lower pump prices, but there is some upward pricing pressure at the moment due to the switch to summer blend gasoline at refineries, which may add about five to ten cents per gallon. But if demand and oil costs remain low, this recent price bounce may fade.

According to data from the Energy Information Administration (EIA), gas demand declined while total domestic gasoline stocks decreased. Although gas demand has declined, fluctuating oil prices have increased pump prices amid tighter supply. This morning, oil prices range from $77 to $83 per barrel, down significantly from one year ago when prices were over $100 per barrel.

Diesel prices continue to fall. The national average price for a gallon of diesel is $4.34, down 4 cents from a week ago. Here in New York, the current average for diesel is $4.96, down 4 cents from last week.

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