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WNY's high gas prices

By Howard B. Owens

The Buffalo News reports this morning that gas prices in Western New York are the highest in the state.

The average price in Buffalo is $3.38 per gallon, or 12.7 percent lower than a month ago.  Rochester is paying an average of $3.28 per gallon, which is down 14 percent.

Meanwhile, the national average has fallen 23 percent.

A month ago, Cleveland's price was nearly identical to Buffalo's. But its price has fallen 31 percent since then, to $2.66. In Erie, Pa., the price over the past month is down 18 percent, to $2.96.

Lawrence Southwick Jr., professor emeritus at the University at Buffalo, said prices in New York State are routinely higher than many other states because of taxes and the cost of related regulations.

The News says that Rep. Brian Higgins, D-Buffalo, has asked the Federal Trade Commissioner chairman to investigate the price discrepancy.

"Your investigation into exactly why gasoline costs significantly more in the Buffalo area than it does in other upstate communities will assist me and my colleagues as Congress takes further action on gasoline prices next year and may uncover cause for the Federal Trade Commission to take enforcement action in the meantime," Higgins wrote in a letter to William Kovacic.

In his letter, Higgins mentioned a few theories arising from previous discussions about why Buffalo's gas prices are higher: the region's distance from oil refineries; differing local taxes and fees; and the amount of retail competition.

High gas prices and high taxes are both job killers.

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