Gas prices are on the rise. Will the prices of other services also increase?
Gas prices have been rising around the country. When this happens, historically, the price of other things also increases.
“For the first time, we are seeing an increase in demand – for the first time since last November. So, demand is at its highest as people return to the road,” says Tracy Noble with AAA Mid-Atlantic.
More New Jerseyans are getting back on the road, pushing up the demand for gas - but fuel supply is down. This will push up the price of gasoline. Many are also fearful that New Jersey residents will also be paying more for other products.
“Especially now in a COVID world where everything is about delivery. It drives the cost, no doubt about it,” says New Jersey Business and Industry Association president and CEO Michele Siekerka.
Siekerka says that small businesses, especially ones that offer delivery services and that are already struggling with lover revenues, will have to make up the difference somehow.
“That’s where pass through comes to the consumer, and we can see it a few ways. It could be a direct cost where they increase the price of service or product or it can be a surcharge,” Siekerka says.
But Nobel says that this is not happening just yet.
“When we hit that $4 mark, that’s when things change. We are not there yet,” Nobel says.
Nobel says that she expects that before New Jersey does get there, the gas supply will go back up. But until then, she says that consumers can save by paying with cash over credit. And she says to compare prices before filling up.
“People need to be very savvy consumers and look around. There are plenty of apps out there. AAA has an app to find the cheapest gas price,” Noble says.
AAA says that gas prices in New Jersey went up 1 cent overnight.