CAPITAL REGION, N.Y. (NEWS10) – Less than a week since New York’s partial gas tax suspension began Wednesday, the cost to fill up has started creeping up again. According to updated data from GasBuddy Monday, the average cost of a gallon of gas dropped just over 5¢ to an $4.81 a gallon in the last week.
While prices are down, it comes after a 16¢ reduction in the state’s gas tax, as well as an additional 8¢ in savings in two local counties. Lower prices at the pump seen on Wednesday have been nearly or entirely offset less than a week later.
Wayne Bombardiere, the Executive Director of the New York State Association of Service Stations and Repair Shops, says it’s due to oil company costs, “After I lowered the price for the tax down to, let’s say $4.69 instead of $4.89 on Wednesday last week, within two days I had to go back to $4.89 because that’s what they raised me, 20 cents.”
Bombardiere analyzed costs from oil companies over the past several days and found that companies began raising prices anywhere from 7 to 14¢ the day after the tax holiday began.
“So right there, you wiped out most of the tax, just on those oil company increases,” he said, noting that the cost has continued to increase in the days since.
With that rise, he says gas stations have to pass the cost onto their consumers, “I would venture to say that they went up what the oil companies went up. Nobody’s gaining any extra profit right now, that’s for sure, not on our end.”
Patrick De Haan, the Head of Petroleum Analysis for GasBuddy, says the high prices at the pump continue in part because of supply and demand, in part, “Gasoline inventories continue to decline even with demand softening due to high prices, a culmination of less refining capacity than we had prior to Covid and strong consumption.”
In response, global oil cartel OPEC+ will increase production by 648,000 barrels per day beginning next month. While it will mean more oil in the global market, it likely won’t ease any pain at the pump.
“We use 20 million barrels a day in this country. It’s going to do nothing, absolutely nothing,” Bombardiere said.
Gas prices surged across the country in the past week, up over a quarter to a national average of $4.85 a gallon, according to GasBuddy. With no end in sight to high gas prices, experts are fearful that average could soon hit the dreaded $5 a gallon.