Business & Tech

What's Fueling Rising Gas Prices

Business owners and residents aren't happy about the rising numbers at the local pumps but there is no public outcry yet.

Babylon gas stations and drivers are not immune to the national increase in gas prices that has hit in recent weeks, yet there are few signs of public outcry being seen.

Since February brought turmoil in the Mideast, oil prices have increased an average of 18 percent.  The recent unrest in  Libya has caused production to drop and oil futures to rise, and Long Island prices at the pump are continuing to go up, now averaging around $3.40 to $3.50 per gallon for regular gas.

The only gas station in the village proper, the Village Sunoco Ultra Service Center on West Main Street, has been feeling the pinch. Owner Joe LaScala, who has run the repair shop and station since 1986, knows the cyclical nature of gas pricing all too well.

"We went through two embargoes, the crash of 2008, and I've seen gas-guzzling cars and trucks go away and came back again," he recalls. "It's all about the price."

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

Prices at the Babylon Sunoco have historically been higher than neighboring stations because of the station's business arrangement with Sunoco.  Other stations change branding and gas distributors to keep prices lower.

"If I posted gas at $3 per gallon right now," LaScala says, "I'd back up Montauk Highway with a line of cars."

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

Although LaScala says he makes the same profit whether prices are under $2 per gallon, as they were following the economic crash of 2008, or over $4 a gallon, as they were in the summer of 2008, he'd personally prefer to see prices sky-high.

"I want a revolt," he laughs. "I want a march on Washington." LaScala believes progressive fuel standard laws and building more domestic refineries would stabilize prices.

According to LaScala, once the numbers at the pump reach $5 per gallon and up, consumer behavior starts to change, as many drivers opt for smaller cars.

Babylon resident Andrea Wallace recently relocated from Oklahoma and is still adjusting to the cost of filling up her tank on Long Island.

"Gas was $3.09 today in Oklahoma," rues Wallace. She said she deliberately chose a car with good gas mileage, as she travels 500 miles per week for work as a pharmaceutical sales representative.

Stations around town are all posting similar prices.  Regular gas at the Hess in West Babylon, America's Petroleum and Watson's, both in West Islip, hovers around the $3.59 per gallon mark.

Gas futures began to drop Friday, after hitting highs not seen since 2008 earlier this week, perhaps as a sign of a beginning market correction. But many forecasters say prices may soon reach over $4 per gallon, as a result of the Mideast events, the recent cold winter and continued fallout from the Gulf of Mexico oil spill.

Today a group of Suffolk County lawmakers are holding a press conference on a proposal to cap county sales tax on fuel prices over $3 per gallon. Patch will have that story, and insight from local legislators tomorrow.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here