Current Gasoline Price in New York nearing $5

A gasoline station in the Bronx has its current gasoline price very close to $5 per gallon.

Tropical Storm-turned-Hurricane Isaac is partly blamed for the increase in current gasoline prices all over the United States. And that could get even worse if Middle Eastern tensions go on, said experts.

The city’s average gasoline price today is 19 cents higher compared to the past month, when it was $4.18 per gallon. At the national level, the most recent average gas price is 18 cents greater than the same period last year, when it was $3.86 per gallon.

Prices fell shortly in the early parts of June. However, Hurricane Isaac struck the U.S. Gulf Coast in August, pushing almost a dozen crude refineries to shut down while the storm approached. The affected facilities were significant in size; closing and shutting down their operations was not that easy. Refineries take a couple of weeks to get up and running again.

The storm came during the part of a year when refineries were cutting down their inventory of summer blend gas and starting to get ready for the production of more affordable winter blend gasoline.

When Isaac occurred, refineries were pushed to limit their operations, leading to a lower-than-usual amount of output. The lower supply is part of the reason for the increases in gasoline price today.

There is hope that prices could start falling as the winter blend gas hits the market. However, Middle Eastern instability may change that. If things become worse there, crude oil price per barrel may further move upward.

The AAA said that July 2008 was the time when the average prices at the pump reached their record high of $4.41 per gallon.

By: Chris Termeer