Gas Prices in New Jersey are Dropping Again
Gasoline prices are dropping again in New Jersey, at a time when prices usually start to increase.
According to Tom Kloza, head of Energy Analysis for the Oil Price Information Service, after a brief rise, those lower New Jersey pump prices are a surprise.
"The average price in New Jersey's about $2.20 a gallon right now. New Jersey is one of the states where we have a couple dozen prices below $2 a gallon. They may disappear briefly in April or May. But I think they come back at the end of the driving season," Kloza said.
Kloza said the average price nationwide is just above $2.40 per gallon right now.
A glut of crude oil supply means world prices are as low as they have been in six years. And those lower New Jersey prices are happening as we switch to the summer grade in the state, which usually brings price increases. According to Kloza, that switch to summer grade gasoline in the Northeast may occur without any real signs of it occurring because the price of crude is dropping so much.
"Crude oil prices are as low as they have been since March 6 of 2009," Kloza said.
The last time that crude oil prices were this low, we were looking at nationwide numbers of about $1.90, and that put New Jersey in the $1.75 range.
Kloza also said domestic crude oil production will move to its highest level since President Richard Nixon was elected. If these energy savings hold true, consumers collectively will wind up with an extra $130 billion to $140 billion in their pockets.
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