What It Costs to Fill The Tank

A look at the latest gas prices in the region (provided by AAA):

Gas Prices Continue to Fall Across the Region

Middle East tension and Philadelphia refinery fire could impact prices in U.S.

Today’s national average price for a gallon of gasoline is $2.66, down three cents from last week.

One year ago, the price was $2.85.

The New York State average is $2.85 – down two cents from last week.

A year ago, the NYS average was $3.02.

AAA Western and Central New York (AAA WCNY) reports the following averages:

• Batavia – $2.77 (down three cents since last week)

• Buffalo – $2.84 (down one cent since last week)

• Ithaca – $2.74 (down four cents since last week)

• Rochester – $2.80 (down one cent since last week)

• Rome – $2.83 (down one cent since last week)

• Syracuse – $2.74 (down three cents since last week)

• Watertown – $2.78 (down four cents since last week)

The summer driving season is off to an unusual start.

Pump prices continue to fall as the domestic price of crude oil, which comprises approximately 60 percent of the cost motorists pay at the pump, remains low and over $12 per barrel cheaper than at the beginning of summer 2018.

Meanwhile, American motorists are headed toward new milestones this summer, according to the Energy Information Administration.

For the week ending on June 14, EIA’s data revealed that demand for gasoline hit its highest-recorded point since the federal agency began publishing the data in 1991.

An explosion and massive fire broke out at the Philadelphia Energy Solution’s refinery in Philadelphia last week.

It is the largest refinery on the East Coast, processing 335,000 barrels of crude per day.

According to their website, in addition to unbranded gasoline, this facility also produces jet fuel and diesel, among other products.

From reports, the fire involved butane and propane, which are chemical components used to make gasoline.

The incident will likely lead to reduced gasoline production at the refinery, as well as reduced regional gasoline stocks and an increase to pump prices in the immediate region.

Gasoline from Canada, neighboring refineries, and the Colonial Pipeline are likely solutions to help backfill supply, meet demand and relieve any tightness in gasoline supplies as a result of reduced gasoline production at PES’ refinery.

So far, the incident has not impacted prices in upstate New York, but motorists traveling to beaches near the Philadelphia region, which is popular for summer road trips, might notice higher pump prices.

Another factor that could impact prices is ongoing tension in the Middle East.

If issues between the U.S. and Iran escalate, the market will likely continue pushing global crude prices higher due to increased market fears that a military standoff between Iran and the U.S. could limit global supply and access to crude.