Are Gas Prices Set to Rise Again in NJ?
Gas prices in New Jersey have been dropping a couple of cents a gallon per day, but there was no overnight decline from Wednesday to Thursday.
Some analysts are saying this could be the end of the price decline.
As consumers adjusted to the record high prices and changed driving habits, demand for gasoline dropped. Despite oil prices remaining above $100 per barrel, the decrease in demand is what primarily fueled the drop in prices.
Andrew Gross with AAA says the drop in demand is unusual, "Usually this time of year, with warmer weather and longer days, we’d see an uptick in gasoline demand as more people hit the road, but we had a slight drop in demand last week, which may be due to higher pump prices."
Now, as the market adjusts, and oil prices remain high, prices are unlikely to come down much more.
If the price of oil rises again, the price of gasoline will continue to follow higher.
Those increases, if they happen, will be more rapid than the decline. The reason prices go up faster than they go down is explained here.
The average for a gallon of regular gas in the Garden State is $4.19 as of Thursday morning. That is a dime less than last week. A month ago we were paying $3.61 and a year ago gas cost $2.95 per gallon.
While New Jersey prices remain near record highs, we are faring far better than some parts of the U.S. In Los Angeles, prices have continued to rise and are now averaging $6 per gallon.
Today’s national average for a gallon of gas is $4.25, which is seven cents less than a week ago, 72 cents more than a month ago, and $1.37 more than a year ago.