Gas Prices: Supply and Demand

Modified: April 29, 2020 2:11pm

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Under price gouging 101, in order for an item to qualify for price gouging, the item must be necessary consumer goods such as hand sanitizers and other disinfecting products, toilet paper and basic food items.

Currently there is consumer buzz about gas prices and why WNY prices seem to be higher than that of the national average.

Elizabeth Carey, Director of Public Relations & Corporate Communications for AAA Western and Central New York recently advised “It's a supply and demand issue.” Check current gas prices on AAA’s website.

“Currently, the U.S. average for a gallon of gas is $1.77, while the New York state average is $2.17, and the average price in Buffalo is $2.22. New York prices are always higher than the national average based on taxes, the lack of a refinery in the state, and our location. Gas stations do set their own prices and that is determined by supply and demand. Local gas stations are often slower to lower prices when oil prices drop, and they are also slower to raise prices when they trend upward. Normally at this time of year, gas prices are on the rise as demand increases with spring travel and gas stations switch over to summer blend fuel, which is more expensive. AAA has no impact on gas prices, but as an automobile club, we do share prices to educate motorists. We do expect local prices to continue to drop in coming weeks.”

There is currently a surplus of fuel which stations are still sitting on and as with more people working from home the demand for gas has also decreased. As the reserve supply diminishes, consumers should see a continued decrease at the pumps. Locations where consumers are seeing the lowest prices, have already sold the reserve supplies and as such the consumers are experiencing the reduced price at the pump.

The price decrease is anticipated to continue until the demand increases once businesses start the process of reopening and the demand for fuel increases.

If you are interested in seeing how much of the price you pay at the pump goes directly for taxes, check out this gas tax calculator from the Erie County Comptroller’s Office.

For further assistance, feel free to reach out to our office, call or email (716)858-6169, consumerprotection@erie.gov. If you wish to file a complaint do so via this form.

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Friday, July 31, 2020