Brace Yourselves – Gas Prices Will Keep Rising in NJ
💲 Where is everyone going? A rise in demand for gas pushes prices higher
💲 New Jersey gas prices near 2022 levels
💲 Recession could drop prices later in the year
In the winter, demand for gasoline typically drops. That, in turn, usually leads to a drop in the cost per gallon.
However, with the mild Winter we have seen in New Jersey (so far) demand for fuel is actually rising and that is pushing the price even higher.
Prices rose again over the weekend, pushing the average cost for a gallon of regular in New Jersey to $3.37.
The steady increase over the last few weeks has New Jersey drivers paying 11 cents more than a week ago. Gas is 14 cents higher than a month ago, and nearing what we were paying at this time one year ago.
Demand is the main driver
According to AAA, "A mild winter may have led to more drivers getting behind the wheel."
The Energy Information Administration reported a sharp rise in demand for gas last week and AAA analysts say that's the reason for the rise in prices.
Oil prices have actually been dropping due to lingering economic concerns that a recession could occur this year in the US and other countries.
If that does happen, overall demand for oil will drop, and gasoline prices should fall as a result.
Patrick De Haan from GasBuddy.com also notes while demand is rising, supplies of gasoline are tight. "Some refineries are down," De Haan says, "and refinery maintenance is around the corner." De Haan says China lifting pandemic restrictions is also increasing oil demand, which could impact global prices for gas.
Everyone is paying more
While New Jersey has seen steady increases over the last few weeks, in other states it has been worse.
Prices increased 34 cents in a week in Colorado, 23 cents a gallon in Georgia, and 20 cents a gallon in Ohio, New Mexico, and Virginia.
The national average cost of gasoline is $3.42. Just a month ago, in most states, including New Jersey, some pump prices were below $3 per gallon.
LOOK: See how much gasoline cost the year you started driving