Binghamton Gas Prices Surge with More Summer Increases Likely
Drivers in the Binghamton area are encountering higher gasoline prices after several weeks of relative stability.
Some gas stations in the region have raised pump prices by at least 12 cents a gallon over the past few days. It appears motorists should prepare for more price hikes between now and Labor Day.
GasBuddy petroleum analyst Patrick De Haan said wholesale gas prices started to rise in part because of heat-related problems at some U.S. refineries.
De Haan told WNBF News that some equipment is being adversely affected by extreme heat causing a loss of output at a time of year when gasoline demand usually peaks. He said other factors include inventory levels being at their lowest point since 2015 and OPEC production cuts.
While the New York state average price rose about seven cents over the past week, the national average jumped by 11 cents.
De Haan said prices "should probably drift a little bit higher" in early August. He said they may go up another 10 to 20 cents a gallon in the next week or two.
Weather conditions may have a big impact on gas prices for the rest of the summer. There's concern that major hurricanes could cause significant damage to refineries.
If production facilities are affected, pump prices could increase dramatically.
De Haan said without serious hurricane-related problems, he hopes gas prices will stay below the four-dollar-a-gallon mark. But, he said, "we're going to get close in the next couple of weeks."