Why Are Our Gas Prices Always So High?
Recently the national news has reported that the average price of gasoline was nearing $3 per gallon. As I drove by our Chautauqua County gas stations, the signs generally were stuck at $3.99 per gallon.
Why?
My memory is that elected officials, going back to New York State Attorney General Bob Abrams in the 1980s, for about 40 years, have been trying to periodically figure out why gas prices here are so high. There never seem to be answers to Why?
Many car and truck owners in our community will take notice when one gas station is 1 or 2 cents cheaper than other stations. This Fall, however, the difference in gasoline prices between gas stations in our County and gas stations in other areas of Western New York have not been measured in just a few pennies. Why?
A week or so ago a friend of mine reported that while gas prices from Dunkirk/Fredonia to Jamestown remained at about $3.99 per gallon, 3 major brand gas station rest stops at the Pembroke Thruway exit (between Rochester and Buffalo) were all selling gas for $3.15 per gallon. Why?
To add insult to injury to area motorists, a few weekends ago, some stations in the Jamestown area raised their price overnight from $3.99 to $4.09 (as the world price of oil was dropping). Other stations, happily, did not follow suit and the stations that went to $4.09 were back to $3.99 by the following Tuesday.
About 15 years ago I was in Syracuse and was filling my car up at a Kwik Fill as a Crossett truck from the refinery in Warren was delivering gas. About 230 miles from the refinery the Syracuse Kwik Fill was selling gas cheaper than the price in Jamestown, just 20 miles from the refinery. Why?
Over the past four months I have made a number of trips to the Williamsville area in Erie County. The gas prices at stations in Williamsville were always about $.30 per gallon or so lower than here. Why?
Within the last week, BJs Wholesale Club near the McKinley Mall was selling gas to non-members for $3.55 per gallon, over $.40 cheaper than in Chautauqua County. Why?
To be clear, our local gas station owners are not responsible for our historically high gas prices. They are lucky to make a few cents per gallon. The answer to our high gas prices must be found elsewhere.
The average driver traveling 12,000 miles a year with a 20 mpg vehicle uses 600 gallons of gas. If gas prices in Chautauqua County are $.40 higher than other places in Western New York, that is an added cost of $240 a year for the privilege of living here. That is a lot of money to most residents of Chautauqua County.
What can elected officials do about this?
If Chautauqua County drivers are being hurt by anti-competitive practices, the United States Attorney’s Office in Buffalo could pursue any violations of Federal Law.
If Chautauqua County drivers are victims of consumer abuse, the New York State Attorney General’s Office could pursue any violations of State consumer protection laws. The New York State Attorney General’s Office has long prided itself on protecting consumers.
If the County Executive wants to get answers to why Chautauqua County drivers always pay so much for gas, he can direct his Law Department to investigate the matter and report back to the public.
If the 19 members of the County Legislature want answers to why their constituents appear to be “ripped off”, the County Legislature has subpoena power to compel people in the gasoline business to appear before the Legislature and explain, if they can, why we all always pay so much for gasoline.
There may be understandable reasons why Chautauqua County gas prices are always so high. In my years in public life here, however, I have not heard any.
Maybe after decades of asking why Chautauqua County gas prices are always so high, we might get some answers.
Fred Larson was a Chautauqua County Legislator from 1985-93 and in 2014 and is a retired City Court Judge.