Gas prices steady in NJ – Summer price spike coming?
Gas prices in New Jersey held steady or even dropped slightly over the weekend.
As of Monday, AAA put the average cost for a gallon of regular gasoline at $3.26.
Pump prices have generally been steady, despite economic turbulence that has been roiling the stock market and impacting oil prices.
There has been a continued drop in oil prices, as an average, and AA spokesman Andrew Gross expects drivers to benefit.
"Given that the cost of oil accounts for 55% of what we pay for gas, its fair to wonder how soon prices will drop at the pump,” Gross said, "But gas stations paid for the fuel that is in their underground tanks weeks ago, when oil was nearly $15 more a barrel. So it will take time for any savings due to cheaper oil to be seen at the pump. And that is assuming the oil price does not rise again."
Analyst Patrick De Haan with GasBuddy.com says the overall trend is a good one for drivers as we begin Spring and head into the Summer driving season.
The trends, De Hann says, "bodes well for a more affordable summer at the pump as it means refiners have more reason to continue churning out gasoline now which will build supply stronger and earlier."
There are factors other than the price of oil that will impact what we pay for gasoline in the weeks ahead.
Demand for gasoline has been rising, which AAA notes often pushing price higher. However, lower oil prices are countering that, for now.
New Jersey is also starting to make the switch to summer blend gasoline, which can raise pump prices as much as 15-cents per gallon.
To learn more about what Summer-blend gas is, why we switch to it and why it is so expensive, check out my latest "Asked and Answered" column on Summer-blend gas by clicking HERE.