It’s The Speculators, That’s Why!

By January 6, 2009Energy

From the Rochester (N.Y.) Democrat-Chronicle, “Slaughter asks oil giants to explain why N.Y. pays more for gasoline“:

U.S. Rep. Louise Slaughter is looking to some of the world’s major oil companiesfor answers as to why western New York motorists pay more at the pump than drivers in other states.

The Fairport Democrat’s office released a copy of a letter sent today to the heads of Sunoco Inc., Citgo Petroleum Corp. and ExxonMobil Corp., asking why there is a price discrepancy between local filling stations and average prices in New Jersey and Massachusetts.”I … am deeply worried about the many western New Yorkers forced to choose between putting food on the table and filling their gas tank to travel to work,” Slaughter wrote in the letter.

According to AAA, the average price for a gallon of regular in New Jersey is $1.51, while in Massachusetts it is $1.63. In the Rochester area, it is $1.78.

One reason for the difference is taxes. According to the American Petroleum Institute, New Yorkers pay nearly 61 cents in state and federal taxes on a gallon of gas, compared with roughly 32 cents in New Jersey and 42 cents in Massachusetts.

You know, we haven’t had an FTC study of gas prices in a good, oh, six months at least.

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