Published: December 05, 2008 12:06 am      

GASOLINE COSTS: Western New Yorkers are paying dearly at the pump

On any given day, chances are Timothy Sudezko knows where to find the cheapest gallon of gasoline.

The 45-year-old North Tonawanda resident has turned price checking at the pump into a full-time hobby.

Three times per day — everyday — for the past several years, Sudezko has provided updates on the rise and fall of gas prices at local service stations for the national Web site, gasbuddy.com.

“I want to give the consumer the best prices in our area,” said Sudezko, who uses his cell phone to text updates to the gasbuddy.com network of more than 181 gas price information Web sites nationwide. “I get a joy out of it because I know where the best prices are. It’s just part of my daily routine.”

While he does what he can to keep tabs on the cost of gas locally, he’s at a loss to explain why the prices are so much different here than they are in other parts of the state and nation.

“I don’t see why our gas prices are so high,” he said. “We should be more or less in line with the entire country.”

And yet, the region is not.

According to AAA, the average price for a gallon of gasoline in the Buffalo-Niagara Falls region as of Thursday was $2.25, roughly 20 cents higher than the average price-per-gallon in other areas of the state, including Albany, Binghamton, Syracuse and Utica.

Western New Yorkers continue to pay more for gas than their counterparts in neighboring states like Ohio and Pennsylvania where the average price for a gallon of regular was $1.68 and $1.93 respectively. Nationally, the average price per gallon was $1.78.

The discrepancy has prompted calls for price gouging investigations by the likes of the Buffalo Common Council, U.S. Rep. Brian Higgins and U.S. Sen. Charles Schumer.

On Tuesday, Niagara County lawmakers got into the act, calling on Gov. David Paterson to investigate the practices of local gas suppliers.

Legislator Clyde Burmaster, R-Ransomville, who sponsored the county’s gas-price resolution, said not a day goes by when he doesn’t hear a complaint from a constituent about the local price of gas.

He wants someone to explain

why the price of fuel is so high in Niagara County.

GAS ...

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“The disposable income of taxpayers in Niagara County is being diminished and nobody seems to be able to come up with a reason why,” Burmaster said.

Higgins appears to be making some progress on that front. In October, he sent a letter to the Federal Trade Commission, calling on the group to investigate the high price of gasoline in Western New York. The commission responded last month saying its review found gasoline prices in Western New York are “unusually high,” a disparity that persisted since mid-October. For the week ending Nov. 8, the commission found retail prices in the Buffalo area were 28 cents higher than those in Albany. Possible causes offered by the commission included unplanned supply outages, changes in motor fuel formulation, unusual changes in demand and other market factors. FTC representatives have assured Higgins they will continue to investigate the matter to determine the causes of the discrepancy. If any evidence of price fixing is found, Higgins said an antitrust investigation and enforcement action can be launched against oil companies, refineries or retailers.

“An investigation will help inform my colleagues and me of the best course of action to take to address gas prices and ensure Western New Yorkers are getting a fair deal,” Higgins said.

Jason Toews, who co-founded gasbuddy.com in 2000, said he’s seen his share of gas-price gauging investigations in other parts of the country over the years. He said his experience tells him motorists in Western New York shouldn’t get too excited about plans to review the local pricing structure. Toews said similar investigations conducted over the years in other parts of the country produced few tangible results for consumers.

Toews, whose Web site provides daily updates on the price of gas at service stations in metropolitan areas nationwide, said the price at the pump is generally driven by competition among gas station owners in a given area. He said neighborhoods where there are a higher concentration of stations generally offer better prices because station owners are forced to compete with one another for customers. He said prices also tend to be higher in more affluent communities where consumers generally have more disposable income and are, for the most part, less likely to hunt around for a better deal.

“Competition is good,” Toews said.

Toews believes his site adds to the level of competition because spotters like Sudezko are always providing the public with a better understanding of the best prices is in town on any given day, or even any given hour.

“There’s more incentive for them to lower their prices,” Toews said. “If people shop at the cheaper stations all the time, what that does is it forces the higher priced stations to lower their prices.”

To find the latest and lowest gas prices in your area, visit gasbuddy.com.

Contact reporter Mark Scheer at 282-2311, ext. 2250