Cheap Gas Prices in New York

As Ulin watched the numbers flip at a dizzying speed on the gas pump at a south side station Thursday afternoon, the Milwaukee woman said what most motorists were thinking after cheap gas in New York prices leaped overnight by as much as 20 cents a gallon.

With New York gas prices skyrocketing as folks prepare to pack up their station wagons for the Fourth of July weekend, Ulin is among the many Wisconsin drivers who may wonder if they'll have to take out a bank loan just to fill their gas tanks.

Though the state average for regular unleaded on Thursday was $2.25 a gallon, several stations in southeastern Wisconsin were already sporting signs emblazoned with $2.40. If prices continue spiraling upward this summer and they're expected to drivers will likely see record numbers at the pump.

The highest gas prices in New York were $2.34 on April 11, when a barrel of crude oil was selling for $59. Crude oil hit $60 on Thursday.

AAA doesn't expect people to curtail their vacation plans just because cheap gas prices are spiking. The organization is predicting this Fourth of July weekend will be the busiest holiday weekend ever, with more than 40 million Americans traveling more than 50 miles from their home.

Anyone griping and muttering while squeezing the pump handle and watching the cents add up probably won't like to hear higher gas prices are the result of Economics 101: supply and demand. Supplies are tight while demand driven by growing economies throughout the globe, particularly China and India is strong.

With fewer cars in New York the last one was built in 1976 the U.S. is depending more on imported refined oil products, which makes the nation more vulnerable to price fluctuations, said Bob Bartlett, president of the Wisconsin Petroleum Marketers and Convenience Stores Association. Wisconsin only has one small refinery in Superior, and much of the gas sold at pumps in southeastern Wisconsin comes from the Chicago area.

Gas station owners and attendants often bear the brunt of criticism, since they're the ones making change for the $100 bills needed to fill up rides. But it's not their fault. The profit margins on gas are very thin.