Press release from the Automobile Association of America:
Today’s national average price for a gallon of gasoline is $4.33, up 14 cents from last week. One year ago, the price was $2.96. The New York State average is $4.52, up 17 cents from last week. A year ago, the NYS average was $3.00. AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia - $4.34 (up 10 cents from last week)
- Buffalo - $4.35 (up 12 cents from last week)
- Elmira - $4.47 (up 18 cents from last week)
- Ithaca - $4.46 (up 18 cents from last week)
- Rochester - $4.43 (up 12 cents from last week)
- Rome - $4.48 (up 16 cents from last week)
- Syracuse - $4.43 (up 14 cents from last week)
- Watertown - $4.46 (up 15 cents from last week)
Gas prices jumped significantly in the past week. According to the latest data from the Energy Information Administration, total domestic gasoline stocks decreased while gasoline demand increased slightly. Increasing gas demand and rising oil prices have pushed pump prices higher.
This morning, oil prices are about $110 per barrel and up. Crude prices rose after the European Union announced a proposal to ban Russian oil imports within six months, while refined product imports would be prohibited by the end of 2022. Countries such as Slovakia have stated they will seek exemptions because they need more time to find alternatives to Russian oil. However, given that global crude supply remains tight, crude prices will likely remain volatile amid the news that supply could get tighter if the ban is implemented.
Meanwhile, the national average for diesel fuel hit a new record today reaching $5.54. One year ago the price was $3.11. In New York, the average price for diesel is $6.38, which is also a record high. One year ago the price was $3.19.
High diesel fuel prices impact businesses that need to transport goods and those that have commercial vehicles like AAA. Nearly all of AAA Western and Central New York’s tow trucks rely on diesel fuel. “To say we’re feeling pain at the pump is an understatement,” said Steve Steinmetz, director of automotive service operations at AAA Western and Central New York. “Prices have literally doubled since last year impacting all towing companies across the state.”
From Gas Buddy:
“Gasoline and diesel prices alike saw strong upward momentum last week as oil prices continued to climb after the EU signaled its desire to sanction Russian oil. In addition, U.S. petroleum inventories saw yet another weekly decline as we near the start of summer driving season," said Patrick De Haan, head of petroleum analysis at GasBuddy. "Not only are diesel prices at a record high, they are at their largest differential to gasoline on record, surpassing the 98-cent difference in 2008 and currently standing at a $1.20 per gallon premium. While motorists filling with gasoline have seen a slight rise in prices, diesel's surge will be a double whammy as diesel prices will soon be passed along to retail channels, further pushing up the cost of goods."
