Press release from the Automobile Association of America:
Today’s national average price for a gallon of gasoline is $4.87, up 25 cents from last Monday. One year ago, the price was $3.05. The New York State average is $4.88, down 5 cents since last Monday. A year ago, the NYS average was $3.09. AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia - $4.75 (down 9 cents from last Monday)
- Buffalo - $4.72 (down 11 cents from last Monday)
- Elmira - $4.78 (down 9 cents from last Monday)
- Ithaca - $4.79 (down 8 cents from last Monday)
- Rochester - $4.79 (down 10 cents from last Monday)
- Rome - $4.79 (down 9 cents from last Monday)
- Syracuse - $4.74 (down 12 cents from last Monday)
- Watertown - $4.80 (down 9 cents from last Monday)
This morning, oil prices are at about $120 per barrel. Crude prices have increased amid supply concerns from the market as the European Union works to implement a 90 percent ban on Russian oil imports by the end of this year. Crude prices were also boosted by increased demand expectations from the market after China lifted COVID-19 restrictions in Shanghai. Additionally, EIA reported that total domestic stocks decreased. As a result, the current storage level is approximately 13.5 percent lower than a year ago, contributing to rising crude prices.
Locally, prices have decreased due to the gas tax cap in New York and additional many counties while prices across the country are increasing rapidly due to high oil prices and increased demand.
From Gas Buddy:
“After a blistering week of gas prices jumping in nearly every town, city, state and area possible, more bad news is on the horizon. It now appears not if, but when, we'll hit that psychologically critical $5 national average," said Patrick De Haan, head of petroleum analysis at GasBuddy. "Gasoline inventories continue to decline even with demand softening due to high prices, a culmination of less refining capacity than we had prior to Covid and strong consumption, a situation that doesn't look to improve drastically anytime soon. Nine states have average gas prices that stand beyond the $5 per gallon mark, with more set to join in the days and weeks ahead. In addition, diesel prices also stand at a record high, a second gut-punch to consumers which pushes prices of most goods higher."
The relief was short lived,
The relief was short lived, last Thursday gas was 4.53-9 on the reservation, yesterday it was up to 4.66-9. Speedway, Flying J, and TA truck stop at Rt 77 and Rt. 90 exit last week was down to 4.66-9 from 4.79-9. Today Flying J and TA are up to 4.77-9, Speedway is up to 4.99-9
The problem with the
The problem with the government interfering with markets. Basic economic theory would suggest that if producers and distributors can get X amount for their product and service, they are going to charge that amount, expecting their competition to do the same. If the government removes a tax, the supply side is still going to charge what they believe the market rate is, pocketing the extra profit. They are not going to pass the savings on to consumers.
Economists call it "rent-seeking" -- using government interference to extract more profit beyond what they might get in a truly free market.
Markets are more efficient when the government doesn't try to manipulate the market.
Genesee County's decision to not eliminate its share of the sales tax on gas looks a bit wiser in light of these events. It was a sound business decision that cuts the rent-seeking by suppliers a little bit and doesn't deprive the county, and its taxpayers, of revenue that would otherwise go to suppliers, not consumers.
Here we go again, " Hi, I'm
Here we go again, " Hi, I'm from the Government and I am here to help. " I just gave myself a pay cut , but I still have to pay these bills ?. Ah don't worry about it unless you work for a living . Just like the people running for Governor claim, I will cut taxes if you vote for me and I will give raises to all law enforcement. Now where the hell does the money for raises come from when you just lowered my taxes?
Can't have it both ways! If
Can't have it both ways! If the government is going to get the blame for high gas prices, it puts the ball in their court to do something about those prices. Clearly, though, something else is going on. Back in March when crude was at $127/barrel, the price of a gallon of gas was $3.85. Today, crude is at $119/barrel and gas prices are approaching $5/gallon. It isn't just oil companies being greedy. This is a fading industry getting desperate, creating a dire economic environment designed to affect political change to their advantage. As for the government, the responsibility for managing the transition away from fossil fuels IS its responsibility. Even the most laissez-faire economist wouldn't trust Exxon/Mobil to pull its own plug.
C.M., back in March, demand
C.M., back in March, demand wasn't what it is now. As spring inches into summer, demand increases. Today's press release talks about demand going up and that consumers are barely cutting back even with high prices. Also, China is coming out of restrictions -- a huge global market -- pushing demand higher. The entire western hemisphere is seeing a demand increase.
No conspiracy. Nothing nefarious. Just Econ 101 -- supply and demand.
The approach by fossil fuel companies to renewable energy is much like the approach of newspapers to digital media. They feel the competitive pressure but can't wrap their heads around how to transition from typewriters to computers. Incumbents often struggle with disruption. It's not a matter of pulling its own plug. It's trying to figure out how to do with while maintaining profitability with the old model. Incumbents always fear disrupting themselves more than they fear outside disruptors, which is why incumbents often die in the marketplace.