Pain at the Pump: Gas Prices to Skyrocket in Central New York

Local drivers are definitely going to wince when it comes time to fill up their vehicles.

The average cost for a gallon of regular fuel in the Utica/Rome area is currently $3.27.  That's up 9 cents in the past week.

The fairest prices in Central New York are in Herkimer County, which is averaging $3.14 a gallon. The state average is three-20 a gallon and nationally it's three-21.  

But, after enjoying steady prices at the pump, AAA predicts we will start reaching deeper into our wallets very soon.

Why Gas Prices Are Expected to Skyrocket

Gas prices began creeping up following the Israel-Iran conflict. This led to a volatile week in oil markets, and crude oil closed at $74.93 per barrel on Friday.

In May, crude oil averaged $60 per barrel.

Further uncertainty was triggered following U.S. airstrikes on Iranian nuclear facilities. Iran has since threatened retaliation, sparking concerns the country could close the Strait of Hormuz.

About 20% of the world's oil trade goes through the strait. While Iran has not yet closed it, the uncertainty alone is causing oil prices to escalate.

Mark Jenkins, spokesman for AAA – The Auto Club Group, said:

Drivers in the U.S. could see higher prices at the pump if tensions persist or if oil flows are disrupted. So far, the impact has been measured, but market watchers are keeping a close eye on how things unfold in the coming days.

This is a far cry from what AAA said earlier this month, when it wrote in a snapshot of the nation's gas prices, "Pump prices are 36 cents cheaper than last June, thanks to this year’s consistently low crude oil prices."

Where Gas Prices Are Going up Most

The good news, at least for now, is that New York's gas prices have not been as deeply impacted by the conflict in the Middle East.  However, prices did jump by 10 cents of more in cities like Buffalo, Watertown, Syracuse, and Rochester.

Meanwhile, costly price hikes have rattled markets in Florida, Michigan, Texas, and Oregon.

Is This Price Gouging?

Preemptively raising gas prices does seem suspicious, which is why the Department of Energy is reminding the public they can report suspected price gouging.

However, those upset to see gas prices jump the second oil prices go up should understand that gas stations buy ahead.  They don't price their gas to reflect what they originally paid, but what it will cost to restock.

Officials say if a gas station raises prices to unfair levels following a natural disaster or shock to supply, that is when customers should file a complaint.

New York has a strict stance on price gouging, section 396-R of the New York General Business Law. Civil penalties will be lobbied against those found guilty of price gouging.

How to Increase Fuel Efficiency and Save Money at the Pump

There are several habits drivers can adopt to make their gas tanks last a little longer.

• Avoid speeding or rapid acceleration
• Take all unnecessary weight from vehicles
• Combine errands
• Pay with cash instead of card to avoid surcharges
• Use websites like AAA or Gas Buddy to compare local prices

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