Gas price increases slow as US stocks grow

Gas prices taper off, but Memorial Day is expected to push prices higher in coming weeks

By AAA of Western and Central New York

Today’s national average price for a gallon of gasoline is $2.90, up 1 cent from last week. One year ago, the price was $2.81. The New York state average is $2.97 – also up 1 cent from last week. A year ago, the state average was $2.95.

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

• Batavia - $2.84 (no change since last week)
• Buffalo - $2.89 (up 2 cents since last week)
• Ithaca - $2.90 (no change since last week)
• Rochester - $2.90 (up 2 cents since last week)
• Rome - $2.91 (no change since last week)
• Syracuse - $2.89 (up 1 cent since last week)
• Watertown - $2.96 (up 1 cent since last week)

Switching to the more expensive summer blend gasoline, ongoing refinery maintenance, and healthy consumer demand are all contributing to the increase in pump prices across the country. While price increases have tapered off this week, remember that Memorial Day is on the horizon. Current factors are likely to continue playing a role in price increases, so American motorists should expect to see prices continue to ascend in the weeks ahead.

Although oil prices inched up at the close of trading on Friday, crude saw losses last week after new concerns about U.S. oversupply emerged. The Energy Information Administration (EIA) weekly petroleum report revealed domestic crude inventories jumped significantly – by 10 million barrels. Crude inventories have not been this high since September 2017, according to EIA’s data. An all-time record high for domestic crude production in recent weeks (after concerns of dwindling supply) contributed to the substantial growth in U.S. crude stocks.

Growing domestic crude stocks could play a role in helping to keep gas prices low this summer, since crude comprises roughly 50% of the cost American motorists pay at the pump. However, if crude exports from the U.S. increase this summer, the domestic crude that could be used to make gasoline for American motorists will be siphoned off to meet restricted supply in the global crude market.

AAA members receive discounts at NOCO gas stations, as well as Fastrac locations and at Shell locations across the country. Learn more here. One can find the lowest prices in the area at http://aaa.opisnet.com/index.aspx.

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.

As upstate New York’s largest member services organization, AAA Western and Central New York provides more than 880,000 members with travel, insurance, financial and automotive-related services. Since its founding in 1902, AAA has been a leading advocate for the safety and security of all travelers. Visit AAA at www.AAA.com.