New Yorkers are getting some relief at the gas pump heading into one of the busiest travel periods of the year, but drivers in the Empire State are still paying some of the highest fuel prices in the nation.
AAA reported Thursday that the national average price for a gallon of regular gasoline has fallen below $4 for the first time since late March, dropping to $3.99 per gallon. The decline marks nearly four straight weeks of falling prices as millions of Americans prepare for record Independence Day travel.
New York’s statewide average, however, remains well above the national average at $4.29 per gallon, making it the ninth most expensive gasoline market in the country.
The recent decline in fuel prices comes after the United States and Iran reached an agreement to reopen the Strait of Hormuz, a critical global shipping route for crude oil. Lower oil prices have helped ease pressure at the pump despite increased demand as summer vacation travel ramps up.
Nationwide, the average price of gasoline has fallen more than 13 cents over the last week and more than 51 cents over the last month. A year ago, the national average stood at $3.19 per gallon.
Despite the recent relief, New York remains significantly more expensive than many other states. Drivers in neighboring Pennsylvania and throughout much of the Northeast continue to face elevated fuel costs, while motorists in states such as Indiana, Texas and Oklahoma are paying between 50 and 90 cents less per gallon than New Yorkers.
AAA data shows only California, Hawaii, Washington, Alaska, Oregon, Nevada, Idaho and Arizona currently have higher average gasoline prices than New York.
The lower prices arrive as travel demand continues to strengthen. According to the U.S. Energy Information Administration, gasoline demand increased from 8.73 million barrels per day to 9.21 million barrels per day last week. At the same time, domestic gasoline supplies declined slightly while production increased to an average of 10.1 million barrels per day.
Oil prices remain elevated despite the recent easing. U.S. benchmark crude oil settled Wednesday at $76.79 per barrel, while national crude inventories remain about 6% below the five-year average for this time of year.
Electric vehicle drivers also saw modest savings this week. The national average cost of electricity at public charging stations fell by one cent to 41 cents per kilowatt hour. While New York was not among the nation’s most expensive or least expensive states for public charging, electricity costs continue to be a factor for drivers weighing fuel and transportation expenses.
With holiday travel expected to accelerate over the next two weeks, motorists may continue to see some day-to-day volatility at the pump. For now, however, drivers across New York are entering the peak summer travel season with fuel prices trending lower than they were just a month ago.
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