BUFFALO (WKBW) — Consumers have enjoyed some summer relief at the pump with gas prices in Western New York moving from close to $5.00 a gallon at the start of June, to $4.17 a gallon to close out August.
Still, according to AAA of Western New York the price of regular gas is more than 30 cents higher in our area than the national average of $3.84. Why?
We took those questions to Patrick De Haan the Head of Petroleum Analysis at Gas Buddy.
Q: Why are prices for gas higher in Western New York than the national average?
A: A lot of the reason is simply that product in the Northeast has been extremely tight. A lot of the reason for that is traced back to covid related shutdowns at refineries. One larger refinery that frees the Northeast in Canada was shutdown in 2020. We lost the Philadelphia Energy Solutions refinery due to a fire in 2019. That has really taken a significant bite out the ability to produce as much gasoline and diesel in the areas of the northeast.
Q: Do you believe that we are seeing the full extent of the tax break holiday in Western New York ?
A: I do, I think it's a complicated situation though. Obviously commodity prices fluctuate on a daily basis. So while as an analyst I can see those fluctuations, and say yes, it's a little harder to show and have motorists kind of understand those numbers.
I can tell you looking at the math behind it, that much of it, if not all of the tax holiday has been passed along.
Q: So is this the "new norm" for New York and Western New York?
A: I think gas prices could inch down a little bit as we approach the end of the year, but like I said you have a lot of supply issues. You are competing for a lot of those supplies of gasoline with other areas, especially diesel.
I do think there will be some moderate improvement as we approach the end of the year.
