BUFFALO, N.Y. (WBEN) Lately, it seems gas prices are rising faster than the daily temperature in Western New York. Gas stations marquees are changing frequently and in some cases by double digits.
"When we hit those record numbers a month or two ago, it was pretty big. But this latest increase is hitting people out of nowhere," said Elizabeth Carey with the AAA of Western and Central New York. "People have been hearing about the gas tax holiday and other efforts to lower gas prices. Then they
get to the pump and say, wait a minute, why is gas so much higher?"
The average price for Tuesday, May 10 in the Buffalo area is $4.41 for regular unleaded. That's an increase of six cents in a 24 hour period. It's also eighteen cents higher than a week ago.
It is a record high for regular unleaded in WNY. The Triple A updates its fuel gauge report daily. The national average is $4.37. The New York State average is $4.56.
Diesel fuel in the Buffalo area is also surging, currently at $6.14 a gallon. "It's hitting businesses like the Triple A, as we rely on diesel for our tow trucks and our contractors. We're all feeling the pinch. Diesel is double what it was a year ago," said Carey.
Denton Cincugrana with the Oil Price Information Service said oil still remains above $100 a barrel. And while refinery operations are in decent shape, there is another issue. "Right now, if I'm a refiner, I'm going to make as much diesel and jet fuel as I possibly can, at the expense of regular unleaded, because those are products that bring the highest return. If you're producing any product, you're going to make the one with the highest margin. That could spell real trouble for the Summer driving season until we see a slowdown in demand," he said.
Earlier in the Spring, Cincugrana thought Western New York could be making a run at five dollar a gallon gasoline. He pulled back slightly on that in an interview with WBEN on Tuesday. "I think we'll probably peak somewhere around $4.50 and $4.75 a gallon." He admits, however, that there are a lot of moving pieces and it's hard to predict what's going to happen.
There is another factor that could affect summer gas prices. Hurricane season starts in a couple of weeks (June 1). "If we have a hurricane that targets the Gulf Coast and refinery operations, somewhere between Houston and New Orleans, we could be in some big trouble," added Cincugrana.
Scientists at Colorado State University, and Florida State University, have warned this year’s hurricane season could be active, similar to last year.
Drivers are anticipating some relief at the pump with a gas tax holiday that starts June 1. But based on the current trend, drivers may not be seeing as much relief as they were expecting.
