Why Are New York Gas Prices The Same Or Cheaper Than Pennsylvania?

So, is everyone happy that gas prices have now fallen for the past seven weeks, according to AAA Gas Prices? Yea, not so much. Don't get me wrong, I am happy that I'm not paying $5 dollars per gallon, but my gas budget has had to increase by at least 50 percent over the past year or so, even with this current slide in price.

Currently (August 2nd) the average price for unleaded gasoline in New York State is $4.509. In the Binghamton area, it's $4.544, so pretty much in line with the state average. One year ago, AAA Gas Prices reports that in Binghamton, we were paying an average of $3.211 per gallon.

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Just to the west of us in Elmira. Gas is cheaper with the current average cost of $4.497. And here's the kicker, remember when gas prices used to be 10 to 20 cents cheaper in Pennsylvania, and then taxes reversed that to become about 20 cents more expensive than prices in New York State?

Well, currently, the average price for unleaded regular gas in PA is $4.460. That's 4 cents cheaper than the New York State average. In Susquehanna County, the average price is $4.558. That's only about a penny more than Binghamton area prices. What happened there? And that's with the New York State and local gas tax relief in effect. Maybe I need to cross the border now for cheaper gas.

Reasons for the difference could be one or more factors including distance from the supply, supply disruptions, and retail competition and operating costs according to the United States Energy Information Administration.

AAA Gas Prices reported on August 1st  that the national average price of gasoline dropped 14 cents in the past week, to $4.21. Now that average sure is a lot lower than what we are paying in New York State and the Commonwealth of Pennsylvania.

The reasons for the decrease include motorists changing their driving habits due to the high prices like driving a bit less, fewer trips to the grocery store, shopping, and dining out at restaurants.

[via AAA Gas Prices, United States Energy Information Administration]