You haven’t seen gas prices like this in a while.
Just in time for your July 4th road trip, the average New Jersey price for a gallon of regular is around $ 3.12.
That’s about a dollar more than a year ago, when the COVID-19 crisis was still relatively recent.
This is the highest price point in the Garden State since fall 2014.
“The equation has changed – back when we had slightly lower prices in 2018 and 2019, US oil production was higher,” said Patrick DeHaan, head of oil analysis for GasBuddy. “But in the wake of the COVID-19 pandemic in which demand plummeted… the oil industry has held back production.”
So now that COVID measures are much better than they were just a few months ago, as more people roll up their sleeves for a vaccine, the demand for gasoline is increasing dramatically – and this increased demand far exceeds the increases in production.
According to AAA, 1.27 million New Jersey residents are expected to travel between Thursday and Monday for Independence Day weekend. Oil markets do not respond to holiday demand shocks, but rather rely on long-term consumption patterns.
“I think the prices could continue to rise for a few more weeks,” DeHaan said.
Prices are expected to peak, DeHaan said, in late July or early August. Motorists can see some relief at the pump in mid-August or late August, as long as there are no hurricane issues.
Contact reporter Dino Flammia at [email protected]
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