Last weekend, US gasoline prices were down 21 c/gal. compared to a year ago to US$ 3. 57 /gal. Also, as last weekend was Labor Day weekend, it was marking the end of the US driving season.
Gasoline price fluctuations
Americans are now doing less driving and, when they do drive, using newer and more energy efficient cars, which of course, inevitably leads to a decrease in demand for gas. However, the main reason that prices are still high is the uncertainty regarding the availability of crude from the Middle East, the world’s biggest crude supplier. However, this doesn’t stop the price of a gallon of gas hitting astronomical levels in some US cities.
The nine cities with the most expensive gasoline
9. Boise, Idaho
On 25th August, when this survey was taken, a gal. of gas cost US$ 3.86 in Boise. The reason behind this is that Idaho has no domestic oil refineries and has to import all its petroleum product supplies, via pipeline from Utah when it comes to gasoline.
8. New Haven, Connecticut
A gal. of gas would have cost US$ 3.87 at the time of the survey, which is actually lower than the US$ 3.96 a gal. would have been a year ago. Overall, gasoline in Connecticut is more expensive than in any other US state other than Alaska and Hawaii and the state is also the third most expensive to live in. Connecticut also doesn’t have any refineries which means all gasoline is imported.
7. Waterbury, Connecticut
US$ 3.88 was the price for a gal. on 25th August. This is the average price for the city as, on the day of the survey, prices in some forecourts were as high as US$ 4.12 /gal.
6. New York, New York
US$ 3.88 /gal. was the price you would have paid in New York city on the survey date. Despite NYC not having a local gas tax, various other commercial taxes to do business in the city are passed down to the final gas purchaser. Also, New York state has no domestic refinery so relies on New Jersey, Pennsylvania an the Gulf Coast as well as Europe and Canada for its petroleum products.
5. San Francisco, California
A year ago, gas prices hit US$ 4.22 /gal. but, at the time of the survey they were at US$ 3.92. Despite the lower prices, Californians on average pay the highest gasoline taxes in the country.
4. Anchorage, Alaska
Alaskan state taxes are 8 cents/gal. with a full gallon costing US$ 3.94. Despite gasoline tax being the lowest in the US and the state having six fully operating refineries, prices are still high as the high cost of crude at the moment is reflected by the price at the pump.
3. Bridgeport, Connecticut
Bridgeport had an average gasoline price of US$ 3.95 /gal. on 25th August. The city is reportedly the highest taxed in the entire US with 24% of an average US$ 50 000 salary being paid in sate and local taxes.
2. Santa Barbara, California
State taxes in California per gallon of gasoline is 53.5 cents which pushed prices in Santa Barbara to US$ 3.97 on 25th August. The lack of pipelines in Santa Barbara also accounts for the higher price as more expensive on land transport is needed to ship crude products to the city.
Gas in Honolulu is US$ 4.23 /gal. and the state, let alone the city pay for its isolated geographical position. Next to New York, Honolulu has the second highest cost of living out of all the US cities. Prices for a gallon of gas in the city were as high as US$ 4.35 on the survey day.
Adapted from a press release by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03092013/us_cities_with_high_gasoline_prices612/