Are NJ Gas Prices Headed to $5/Gallon?

Drivers in New Jersey have been getting a break at the gas pumps for weeks. Many fear the downward trend in gasoline prices could be halted as Israel goes to war against Hamas.

There are some who have predicted a long-term conflict that impacts a large portion of the Middle East could drive prices back into the $5.00 per gallon range.

However, leading analysts say the short-term impact should be minimal and drivers should continue to see a decline.

Patrick De Haan with GasBuddy.com notes that Israel and Palestine are not major producers of oil. If fighting between the two is relatively short, there will be little to no impact on oil prices.

Fellow analyst Tom Kloza with the Oil Price Information service agrees. He expects gas prices to continue to drop for at least the next month.

Kloza warns, however, that if the fighting were to spread to Saudi Arabia and disrupt oil exports, we could see a sharp increase in prices. Saudi Arabia is the world's largest producer of oil.

For now, Saudi officials have committed to increasing oil exports which should cause further downward pressure on the price of both oil and gasoline.

⛽ New Jersey gas prices

The price of a gallon of regular gas in New Jersey has been falling for weeks.

AAA puts the current statewide average at $3.55. That is a drop of more than a dime per gallon and is at about what were paying one year ago.

"Drivers are finally seeing some relief at the pump as the seasonal swoon picks up momentum,” said Andrew Gross, AAA spokesperson. “At least one state has locations selling gas below $3 a gallon, and we should begin to see more states join in over the next few weeks.”

New Jersey hit a record $5.05 per gallon for regular gasoline in June, 2022.