The High Cost of Gas in Greater Binghamton
By Jim Willis on Nov 26, 2007 in Business, Energy, Transportation | Printable Version
Can anyone tell me why I’m paying $0.20 more per gallon for gas in Greater Binghamton than it costs 25 minutes over the border in South Gibson, PA? Does it really cost that much to deliver gas an extra 25 miles? Last Thursday as my family and I were traveling back from the Scranton area, having visited family for Thanksgiving, I stopped at the Flying J just off the exit in South Gibson. I paid $3.05 per gallon to fill up my tank. About the lowest price I’ve seen in Greater Binghamton is $3.25 per gallon–a full 20 cent difference. Why is that?
I also notice when traveling north to Norwich and west to Elmira prices there are usually lower than here too, so I don’t think the reason is solely because New York State assesses an additional nickel tax to every gallon. I honestly don’t know why it’s so much higher here, higher than other surrounding areas in this part of New York.
I’ve read that something like 85% of our local gas stations are owned by two or three companies. Maybe it’s a competitive issue? As in, there’s not enough competition locally? If you have any theories, or if you know the answer, I’d love to hear it. Leave me a comment.
Technorati Tags: Binghamton, gas prices
Justin Bleuer | Nov 27, 2007 | Reply
These are good questions! As high as gas prices are in Greater Binghamton, they are consistently higher in Buffalo where my family lives. My wife’s family lives in Little Falls, NY (between Syracuse and Albany) and I am told they usually have some of the highest gas prices in the state. I have found our Binghamton prices to be at least 10 cents less than both of these places, regardless of time of year. I always chalked up the NY vs. PA difference to state tax differences. But if there is only a nickel tax difference, that would not be the determining factor. NY price fluctuations are huge - see the 54 cent spread: http://www.newyorkstategasprices.com/
Jim Willis | Nov 28, 2007 | Reply
Thanks for that Justin! It’s good to get a perspective from other locations in the state. I guess it makes me feel a little bit better (but not much!) that it’s higher in other locations. It just seems to me something besides the free marketplace is controlling the price of gas in the Empire State.
Thanks for taking the time to comment.
- Jim
Jennifer Willis | Nov 28, 2007 | Reply
It amazed me a couple of years ago when I traveled to Boston that the gas prices were about 15 cents lower than ours in upstate NY. And that was in a metro area! I hear you about PA. A 20 minute drive for me to Sayre will score me that 20 cent savings. Curious indeed.
Jim Willis | Nov 29, 2007 | Reply
Thanks for posting sis!
- Jim
mike | Dec 1, 2007 | Reply
I was always told that the reason for the higher price vs PA is taxes, as the price for crude skyrockets to 100 dollars a barrel,it has always been different in price, but we only notice now because we actually check gas prices cause who knows what it will be day to day. I was hoping my state lawmakers would try to ease the burden placed on taxpayers by easing the taxes a little to help us out. I recall hearing that 50-60 cents a gallon is tax. Maybe Broome County adds a little more tax? The tax money doesn’t look like it goes towards repairing the highways and bridges, who knows where it goes. To date I have not heard that ever mentioned by anyone in gov’t. He/She would be laughed out of Albany anyways.
Pepe Ed | Dec 1, 2007 | Reply
Sorry, Oneida County has the highest price on a gallon of gas, due to the 9% sales tax
Jim Willis | Dec 3, 2007 | Reply
Thanks Mike & Pepe Ed. I was hoping someone who knows more about this topic than I might chime in too. I’m confessing my ignorance on the topic. I guess my ultimate question is, why does the price fluctuate so much? Hey, I’m a free market person…so I’m all for businesses competing. And inevitably geography, efficiency of operations, etc. will have an impact and give some operations a price advantage. But 20 cents a gallon!? Gas is a commodity so you expect the prices to be pretty close. I don’t understand why they aren’t.
At any rate, thanks for the update on Oneida County Ed. I feel for the people there!