Rochester gas prices aren’t falling as fast as elsewhere


By the numbers

65 percentage of gas price due to crude oil cost
49.5 cents, average taxes per gallon of gas nationwide
69.1 cents, average gas tax in New York state
$3.30 price in South Carolina, lowest in U.S.
$4.09 price in Alaska, highest in U.S.
According to AAA, a gallon of regular unleaded in Rochester averaged $3.80 on Tuesday. That price is 24 cents more than the national average and 12 cents more than the average in Syracuse and Albany.

Western New Yorkers on road trips know to try to coast into Pennsylvania or Native American reservations, even if the needle is pushing E, to take advantage of lower gas prices.
And that gap between what it costs to fill up locally vs. other parts of the state and nation is widening.

According to AAA figures, the average Rochester-area price of regular unleaded was $3.80 on Tuesday — 24 cents more than the national average of $3.56.
One month ago, when the local price was $3.94, the difference was 16 cents. A year ago, when gasoline was roughly $1 cheaper, the gap was only 13 cents.
Taxes and competition are major factors in the differences between regions, said Patrick DeHaan, senior petroleum analyst of GasBuddy.com, a gasoline pricing site.
“The national average is just that — an average,” DeHaan said. “I wouldn’t put much stock in differences between your area and the national average. Some areas move more quickly than others in terms of prices.”
While the Rochester area is more expensive than the national average, New England states were more expensive in 2010 than mid-Atlantic states such as New York and Pennsylvania, according to the U.S. Department of Energy. In general, the agency said, gas tends to cost more the farther it has to go from the source of supply.
The Gulf Coast, the largest source of gasoline production, had the lowest average gas prices last year, according to the Energy Department.

The expense of putting a tiger in your tank is a pocketbook strain on Empire State residents. Siena College Research Institute’s monthly survey of consumer confidence found that, in June, 66 percent in New York said gas prices are having a notable impact on their household finances, while 71 percent said the same about grocery prices — which have been climbing in recent months in part due to high oil prices.
Roughly half of New Yorkers cited gas prices as a financial issue through most of 2010, but that percentage began climbing as prices rose and has remained high even though prices have come off their mid-May peak.
Filling up in western New York is also a more pricey proposition than farther east. While Buffalo and Rochester prices are typically closely aligned, the difference Tuesday between a gallon locally and in either Albany or Syracuse was 12 cents.
One month ago, gas was 6 or 7 cents cheaper in central New York than western New York, according to AAA figures.

The reason for the price differential widening within the state “remains a mystery,” said Shaun Seufert, spokesman for AAA of Western and Central New York. “Typically there isn’t more than a nickel difference between western and central New York,” he said.
“There are several theories on why prices in our part of the state remain higher … but no real evidence,” Seufert said. “Nationally, prices have dropped much faster than in New York. New York state is typically among the top ten highest for gasoline based simply on taxes, but the question of ‘why so much higher here’ remains.”
Meanwhile, the differences in prices among gas stations in an area can mean the difference between staying in business and not.

Paul Marone, owner of East Avenue Auto in Rochester, said the days of small, independent filling stations such as his may be numbered as competitors such as BJ’s and Delta Sonic sell many times the amount of gas he does, and get it at pricing out of his reach.
“They’re able to bypass all the things that cost me a ton of money,” Marone said. “The oil companies do not want to deal with me. It’s been a really hard business to be in.”
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DemocratandChronicle.com http://www.democratandchronicle.com/article/20110706/BUSINESS/107060319/Rochester-gas-prices-aren-t-falling-fast-elsewhere

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