Press release from AAA:
Today’s national average price for a gallon of gasoline is $1.86, down 7 cents since last week. One year ago, the price was $2.82. The New York State average is $2.25 – down 5 cents from last week. A year ago, the NYS average was $2.82.
AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia -- $2.31 (down 7 cents since last week)
- Buffalo -- $2.31 (down 2 cents since last week)
- Ithaca -- $2.27 (down 5 cents since last week)
- Rochester -- $2.24 (down 3 cents since last week)
- Rome -- $2.24 (down 5 cents since last week)
- Syracuse -- $2.19 (down 5 cents since last week)
- Watertown -- $2.24 (down 5 cents since last week)
Gas prices continue to be unusually low. Two reasons for this dip in prices: COVID-19 – demand is historically low, and the oil price war between Russia and Saudi Arabia drove oil prices down. Oil prices directly impact pump prices.
Some gas stations across the United States are selling gas for less than $1 per gallon – the Native American reservations locally are doing this. Gas prices are higher in NYS due to three main factors: taxes, no refinery in New York State, and delivery challenges.
Typically, at this time of year, refineries would be switching over to summer-blend fuel, which is more expensive to make, and demand would be rising with Easter/spring break travel – but this is a very unique situation given the extremely low demand, no travel, and refineries stalling production.
From GasBuddy:
"As expected, and for the seventh straight week, the national average moved considerably lower, as well as gas prices in every state as retail prices continue to play catch up to the dramatic decline in market prices in recent weeks. And good news for consumers- contrary to popular belief, an OPEC deal over the weekend to cut oil production will actually not have a near-term impact on gasoline prices -- not even one bit," said Patrick DeHaan, head of petroleum analysis for GasBuddy.
"Establishing a floor on ultra-low oil prices will hopefully keep U.S. oil production online instead of bankrupting producers. The aim is exactly that -- keep production online -- which will keep prices affordable going forward, instead of ultra-low prices shutting in oil production, leading to a slingshot in gas prices years from now.
"Going back to gas prices, I expect prices to continue moderating for now, as gasoline demand appears to remain near 50-year lows."
Also, the drop in fuel taxes, tolls mean less funding for roads maintenance
