Will ‘Brexit’ Mean Cheaper Gas Prices in New Jersey?
Prices at the pump in New Jersey have been on the decline in recent days, but Britain's decision to exit from the European Union could drop prices even further.
According to Gregg Laskoski, who handles Northeast analysis for GasBuddy.com, "Brexit" is pushing crude oil prices lower thanks to a strengthened U.S. dollar.
"We see the U.S. dollar in a very strong position, particularly against the European currencies and against the pound," Laskoski told Townsquare Media.
When the dollar is weak, crude oil and many other commodities go up. In this case, the opposite is happening.
"It looks like that is going to further exacerbate the downward trend," Laskoski said, noting it will "take some time" before a real turnaround is seen either in crude oil prices or retail gasoline prices.
That's, of course, not accounting for a potential huge surge in New Jersey's gas tax. Legislators are considering such a move, and early Tuesday morning, the Assembly gave it the green light with support from Gov. Chris Christie.
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|New Jersey Gas Prices provided by GasBuddy.com|
Gas prices are already lighter on the wallet than in recent memory. The average price for a gallon of regular is about 50 cents cheaper than the same time last year.
The latest update pointed to U.S. fuel consumption that hasn't been seen since August 2007 — more than 9.8 million barrels per day. But there are enough pieces of the puzzle outweighing demand.
"I know a lot of people expect prices to be rising when you're heading into a major travel holiday," Laskoski said. "That's not the case. We're still seeing retail gasoline prices moving lower."
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