Ending Unfair Gasoline Zone Pricing

Legislative Column from Assemblyman Ken Blankenbush (R,C,I-Black River)

Many of us here in the North Country and Mohawk Valley rely on personal vehicles for transportation across this beautiful region. Trucks are used to transport goods in and agricultural products out. We rely on gasoline, which plays an important role in our economy.

Gone are the days of less-than-a-dollar gallons of gas. More troubling, I’ve had many constituents bring to my attention the growing disparity in gasoline pricing by region. Taking a quick look at prices on GasBuddy.com, there does seem to be a regional disparity in cost. The state average price for a gallon of regular gas is about $2.68. Utica and its surrounding cities and towns have averages closer to $2.60, Watertown and Lowville averages are hovering just over $2.60 as well, and Gouverneur prices are closer to the state average.

Then there is Syracuse, which has a $2.46 average according to the website. Many of my constituents who commute to work in Syracuse are puzzled by this, as am I. The higher regional pricing in our area puts us at a disadvantage. In a WIBX report, a representative from the American Automobile Association (AAA) said the high prices may be because a lower volume is sold in these areas.

I have joined my colleague across the aisle, Assemblyman Anthony Brindisi, in sponsoring a bill to end this unfair practice of regional pricing, which negatively impacts residents in this region. We believe gasoline pricing should be determined by the costs of crude oil, transportation, vending and natural market occurrences, rather than the discriminatory practice of regional pricing. This bill would impose tighter controls to prevent such pricing schemes.

Regional pricing is different from price gouging. The state’s Price Gouging Law (General Business Law § 396-r) prohibits merchants from taking unfair advantage of consumers by selling goods or services for an "unconscionably excessive price" during an "abnormal disruption of the market," like the flooding we experienced a few years ago. This law applies to grocery stores, gas stations, hardware stores and other businesses.

Although price gouging is rare in this state, I want to be sure you know where to report any incidents. You may report price gouging online at www.ag.ny.gov/complaint-forms or by calling the New York State Attorney General’s regional offices in Utica at (315) 864-2000, or in Watertown at (315) 523-6080.

As always, I seek your input. Please contact me with your ideas on this or any legislative topic. You may email me at blankenbushk@assembly.state.ny.us or call my office at 493-3909.