Saturday, February 25, 2012

A Repeat: Gassed Up, Fed Up

     Today I filled my car with gasoline in Cortland at $3.65/gallon. This was the cheapest price in Cortland on Tuesday, October 25, 2011. In Ithaca the cheapest price was $3.61/gallon, in Syracuse $3.51, in Moravia $3.56 and in Auburn $3.44. A year ago the price for a gallon of gas was about 70 cents cheaper in New York State.
     The wholesale price has averaged about $2.70 over the past month. A man who works for a retail gasoline dealership association in Syracuse says that you add about 80 cents to the wholesale price to arrive at the retail price in our area. That would be $3.50/gallon.
     So why is Cortland the most expensive place to buy gasoline of the aforementioned cities and villages?
     Supply and demand?
     When was the last time you saw a "price war?" Can't remember? Does that mean there is no competition? Does dropping the price three cents a gallon on a selective day of the week, always at the same brand stations, count as competition? Have you ever seen different brand stations with three cents discount on the same day? Doesn't it look as if we have one distributor dealing gas to our county?
     It's more like musical chairs.
     While the music plays, and you scramble to get a bargain seat, your money is drawn into a black hole controlled by gasoline distributors located outside Cortland County.
Gassed up, fed up.

Edith O'Reilly, Cortland, N.Y.

Editor's note: Today the price is approaching $3.90/gal. Except for a change in price, Edith's observations are sound. Her questions go unanswered. See related article in Syracuse Post-Standard:
http://www.syracuse.com/news/index.ssf/2012/02/gas_prices_continue_climbing_a.html
and numbers based on $4.04/gallon in NYC.
Per-gallon breakdown
Where your gas money goes:
Federal tax 18.4¢
State Petroleum Business Tax 17.8¢
State Motor Fuel Excise Tax
State Petroleum Testing Fee 0.05¢
State Spill tax 0.3¢
State sales tax
City sales tax in MTA region (4.375%) 16.9¢
TOTAL TAXES: 69.45¢
Refiner 23¢
Delivery
Gas station 22¢
Oil company $2.88


Read more: http://www.nypost.com/p/news/local/getting_hosed_j5Gq8nl4fZEzfZVQDMMn9H#ixzz1pTjfHXtL

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