Central New Yorkers continue to face high gas prices and relief seems unlikely. AAA reported the average cost of a gallon of gas in Syracuse is seven cents higher than last week — a response to the anticipated Russian invasion of Ukraine. Now that troops have crossed the border, costs are expected to jump, especially after the U.S. and NATO allies imposed heavy sanctions on Russia.
Nicole Petersen, the spokesperson for fuel costs tracker Gas Buddy, said the conflict halfway around the world is hitting Syracusans in their wallets because countries are cutting economic ties with Russia in light of the attack.
Some of the most powerful impacts of our actions will come over time as we squeeze Russia’s access to finance and technology for strategic sectors of its economy.
— President Biden (@POTUS) February 24, 2022
Along with our Allies and partners, we estimate we will cut off more than half of Russia’s high-tech imports.
“Russia’s oil exports would be cut off completely, which will extremely limit oil supply. Therefore, hiking up prices not only in the U.S. but across the world,” Petersen said. “We’ve already begun to see prices rise in oil markets and in gas across the U.S., so we could be looking at a lot bigger increases in the weeks to come.”
Petersen added that gas prices typically rise this time of year regardless of the Russia-Ukraine conflict—more people are on the road and oil refineries often conduct maintenance in spring. This could mean the consequences of the Russian invasion will hit harder and cause a ripple effect on the supply chain.
“For truck drivers we could see an impact in how long it takes for goods to get delivered and therefore an increase in the prices of them as well,” said Petersen. “Consumers could see empty grocery shelves like we have been during the pandemic or delayed deliveries from major delivery companies.”
Pending talks between Iran and western powers on a nuclear agreement could counteract this problem by bringing more crude oil supply into global markets. Yet, there’s no timetable for such a deal.
Editor's note: This story has been updated to clarify the driving factor behind last week's gas price increase.