Average gas prices in NJ nearing $3 per gallon. Here’s what’s causing the increase
Gas prices have been creeping up in New Jersey and across the country over the past several weeks. The average price of gas in New Jersey is now at $2.95 per gallon.
The price increase is mainly because the demand for fuel has also gone up. But there are many other factors leading to the increase, including higher crude oil prices.
“The price of crude factors between 50-60% into the prices of gasoline,” says Kathleen Zinszer with AAA Mid-Atlantic.
Some other factors are the increase in demand and a lower domestic supply of gasoline. The type of gasoline also changes during the warmer months.
“The stations switch over to a summer blend of gasoline. Summer blend gasoline is more expensive to produce, and drivers are going to pick up that extra cost,” Zinszer says.
Also, more New Jerseyans are getting vaccinated against COVID-19 and are feeling more confident about taking trips, as opposed to this time last year.
“March 2020 everybody was trying to figure out what was going on and so many people were told, ‘You need to stay home no matter what,’” Zinszer says.
Gas prices in New Jersey averaged $2.64 in 2020. The last time the state saw gas prices nearing $3 was in June of 2018.
The good news is that the price of crude oil has leveled out in the last week, which can slow the increase of gas prices.
Drivers are urged to shop around to find cheaper gas.