The annual switch from winter to summer blend gas happens next week and experts said it’s coming with a higher than normal price jump at the pump.
The advice from one oil expert is to fill or top off your vehicle’s tank this weekend, because next week will be a real punch in the wallet. Prices could push to the $3.75 a gallon range as soon as Monday at some gas stations.
“This jump is bigger than normal,” said Tom Kloza, Oil Price Information Service global petroleum analysis. “We’ve seen this movie before … I think it’s probably a shock because it happens so quickly.”
Normally, the price difference between winter and summer blend gas is a 10 to 20 cent per gallon price increase, this year, it’s 30 to 40 cents, Kloza said.
New Jersey, New York, Pennsylvania and New England states are the last to make the switch, he said. Other states such as Maryland and Virginia already made the change.
This will be the last weekend New Jersey drivers will enjoy a state average price of $3.32 for a gallon of regular that is under the national average of $3.63 for regular, that AAA reported Friday.
“You’re 30 cents below the national average because you’re still using winter gas,” Kloza said.
Drivers who tank up at high volume gas retailers, such as Wawa, Quick Chek and BJ’s are likely to see the increases sooner because they get daily gasoline deliveries that come with the latest price increases, Kloza said.
Summer-blend fuel is more expensive to refine because it has a longer production process and the overall yield of gasoline per barrel of oil is lower, according to the National Association of Convenience Stores. That adds 15 cents per gallon to the production cost of fuels that cause less air pollution.
“Gas is eight to nine different components. During the winter they can use cheaper components like butane, in warmer months, it’s more restrictive,” Kloza said.
Why so high this year?
There are a number of factors, including geopolitical tensions increasing between Iran and Israel, Ukrainian attacks on Russian oil producing facilities and speculation in the commodities market, all driving up the price of crude oil, the raw product gas is refined from, Kloza said.
“It could impact U.S. consumers, for the first time, Russia will be an importer of U.S gas,” he said. “It’s the time of year, there is enough speculative action in crude and gas futures driving prices higher.”
Depending on the country of origin, some blends of crude oil topped $90 a barrel Friday.
In December, prices were roughly $72 a barrel, Kloza said.
Our journalism needs your support. Please subscribe today to NJ.com.
Larry Higgs may be reached at lhiggs@njadvancemedia.com. Follow him on X @CommutingLarry
