Gas prices in New Jersey are surging higher and more price hikes are expected, experts say.
This is the last week before New Jersey makes the switch to summer reformulated gas that traditionally comes with a higher price. But there are other reasons driving the steady price increases over the past month, said Patrick DeHaan GasBuddy.com petroleum analyst.
“I think the earthquake was really people stomping on the ground, angry because gas prices are starting to go up in Jersey,” he joked. “You have a rise in price of oil and now New Jersey is a week away from transition to summer gas.”
When New Jersey makes the final change to summer gas in mid-April, that typically adds 20 to 25 cents per gallon to the pricing drivers are seeing now at the pump, De Haan said.
“It will go from 30 cents (a gallon) under the national average to 5, 10, 15 cents over it,” he said. “So fill up your car, because gas is about to take a big jump in New Jersey.”
That increase doesn’t include a new 1.9 cent per gallon annual state gas tax increase approved by the state legislature and Gov. Phil Murphy that takes effect on July 1 to fund the state Transportation Trust Fund for major state highway, bridge and transit projects.
Right now, New Jersey drivers are enjoying a rare moment where the state average per gallon price is lower than the national price for regular.
The average per gallon price for regular was $3.32 on Tuesday in New Jersey, compared to $3.60 nationally, AAA reported. But that price has been marching higher over the past month when AAA said the state average for regular was $3.18.
Clever drivers can find better prices by shopping around. GasBuddy.com’s crowd-sourced price list included 15 gas stations across the state with prices ranging from $2.97 to $3.05 for regular.
“New Jersey is not often below the national average by this amount…30 cents per gallon below the national average,” De Hann said. “So enjoy it.”
Among factors for the price creep is the rising cost of crude oil, which steadily rose from $81.35 a barrel on March 27 to $86.43 on Monday, NASDAQ reported.
There are geopolitical factors - from the risk of unrest in the Middle East with tensions between Israel and Iran to the OPEC extending oil production cuts into the second quarter of 2024, De Haan said.
OPEC production cuts could be extended into the summer, De Hann said. That decision could be made after an OPEC meeting scheduled for June 1.
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Larry Higgs may be reached at lhiggs@njadvancemedia.com. Follow him on X @CommutingLarry
