Oil Prices Drive Up Gas Prices

Oil Prices Drive Up Gas Prices

Despite dropping demand, pump prices increase
Elizabeth Carey
gas prices

Today’s national average price for a gallon of gasoline is $2.32, up six cents from last week. One year ago, the price was $2.59. The New York State average is $2.39 – up six cents from last week. A year ago, the NYS average was $2.73. AAA Western and Central New York (AAA WCNY) reports the following averages:

  • Batavia - $2.31 (up four cents since last week)
  • Buffalo - $2.33 (up seven cents since last week)
  • Ithaca - $2.35 (up five cents since last week)
  • Rochester - $2.36 (up six cents since last week)
  • Rome - $2.42 (up four cents since last week)
  • Syracuse - $2.34 (up six cents since last week)
  • Watertown - $2.41 (up five cents since last week)

Pump prices are on the rise despite gas demand falling to the lowest level recorded since the end of May 2020. Domestic crude prices climbed above $50 per barrel while total refinery utilization increased from 79 percent to 81 percent leading to higher pump prices. If crude prices continue to stay above $50 per barrel - WTI is $51.71 this morning - alongside higher refinery utilization rates, drivers could see pump prices continue to climb, which is unusual given that low winter gas demand typically pushes prices to their lowest point of the year.

Crude prices increased last week after Saudi Arabia announced that it would cut its crude production by 1 million barrels per day in February and March after the Organization of the Petroleum Exporting Countries (OPEC) met with its partners, including Russia and Kazakhstan, to discuss their ongoing production reduction agreement. If total domestic crude supply continues to drop, crude prices could continue to increase and push pump prices higher.

Motorists can benefit from comparing pump prices before filling up with the AAA Mobile App - a convenient option to find the lowest gas prices in a given area. Plus, the app is the quickest way to request roadside assistance. Learn more at www.AAA.com/Mobile.

AAA members receive discounts at gas stations such as Fastrac, Maple Leaf Market and Shell locations across the country. Learn more here. Motorists can always find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also be used to map a route, find discounts, book a hotel, and access AAA roadside assistance. Locate gas prices across the country at http://gasprices.aaa.com.