ORCHARD PARK, N.Y. (WIVB) — Residents in western New York are wondering how low will gas prices go.
A top executive with the largest local petroleum company thinks the free fall isn’t over yet.
“I think it’s here for awhile” said NOCO Express Vice President Mike Newman. He predicts gas will go down another 25 cents a gallon this winter. ” I see them continuing to go lower, significantly lower and I think it’s gonna hold throughout ’15.”
He says part of the reason is the fracking boom. “Let’s remember, they’re fracking for crude oil, too, in the tar sands in Canada, North Dakota, Midland, Texas. These are all bringing crude oil to the surface as well, and they’re bringing it at significantly lower prices than we’re able to find on the world market. “That’s gonna continue to drive up supply and if you put that together with what’s going on in the automotive world with demand going down, cars being more efficient, I mean it’s the perfect storm.”
Newman says Western New Yorkers pay more for gas because the pipelines bringing it here have less capacity, and about 70 cents of every gallon is taxes.
- .08 cents – Excise Tax
- .184 cents – Petroleum Business Tax
- .08 cents – State Sales Tax
- .05 cents – Petroleum Testing Fee
- .20 cents – Spill Tax
- .133 cents – Local Sales Tax
- .184 cents – Federal Gas Tax
But when gas prices go down we don’t pay as much in sales tax. Erie County’s Budget Director estimates that Erie County will take in about 4 million dollars less in sales tax revenue from gas next year if prices stay down, but we may make up for that by buying other things.
When it comes to taxi cabs, the riders really aren’t seeing any benefit right now, but the drivers are.
Liberty & Yellow Cab President Bill Yuhnke says his drivers are ecstatic that prices are finally coming down. The four hundred local drivers at Liberty & Yellow Cab pay for the gas they use, and the City of Buffalo dictates how much they can charge riders. Those rates haven’t changed in five years.
“They can make a living now, but if they were working all day and then most of their money went into the gas tank, it’s hard to get up in the morning to go to work.”
The price of diesel fuel hasn’t dropped as much as regular gas because there’s more global supply for diesel. Many vehicles in Europe burn diesel fuel.