Lower Gas Prices May Be Here a While
The price of gasoline has been going down across New Jersey and the news just keeps getting better.
Tom Kloza, chief oil analyst at GasBuddy.com, said there are about 30 or 40 gas stations in New Jersey right now that are pumping regular gas for under $3 per gallon.
"We've got a nice downtrend that we're looking forward to," he said.
Kloza said ever-higher domestic crude production and weakening end-of-summer demand are a couple of the reasons for that trend.
He adds, however, that "most of the drops have really occurred because the price of crude oil is about somewhere between $13 and $16 a barrel lower than it was in June."
Gasoline tends to see a markup of about $20 or $30 over crude in the summertime, but once the leaves turn, it sells for just a few dollars over the price. It's a pattern that has established itself over the last three fall seasons, but according to Kloza, this year the change will be a little bit more dramatic. He said this fall, we will see prices we haven't seen in the United States since 2010.
Kloza believes the norm for a gallon of regular in the state will be under $3 by Columbus Day or Halloween.
What about trouble around the world that could throw a monkey wrench into the lower prices?
According to Kloza, the tragedies and violence in the Middle East, and to a certain extent West Africa, aren't necessarily precipitating any increases in crude oil prices here in the U.S.
Pump prices on Monday showed a New Jersey average of $3.18 a gallon for regular. The national average was $3.33.
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|New Jersey Gas Prices provided by GasBuddy.com|