Pump prices are on the rise in New Jersey despite the recent 8.3 cent drop in the gas tax. Today’s New Jersey average is $3.25 per gallon up three cents in the last week and $1.02 higher than this time last year.
Since Monday, the national average for a gallon of regular gasoline has increased by six cents to $3.26, the highest pump price since October 2014. The slight increase in gas demand has contributed to the rise in the national average. However, the main culprit for rising pump prices remains high crude prices which settled just shy of $80 per barrel on Friday.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
|10/08/21||Week Ago||Year Ago|
|Cape May County||$3.32||$3.31||$2.36|
|Middlesex, Somerset, Hunterdon Counties||$3.28||$3.24||$2.25|
|Monmouth, Ocean Counties||$3.28||$3.25||$2.27|
|Crude Oil||$79.35 per barrel (10/08/21)||$75.88 per barrel 10/01/21)||$40.60 per barrel (10/09/20)|
At the close of Friday’s formal trading session, WTI increased by $3.47 this week to settle at $79.35, the highest price since 2014. Prices increased this week after the U.S. Department of Energy dispelled speculation that the Biden Administration would sell crude oil held in the U.S. Strategic Petroleum Reserve. The move could have put more crude into the domestic market, but it is unlikely to have had a sustained downward impact on oil prices. Additionally, prices rose earlier this week following OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, choosing not to move forward with an agreement to produce 800,000 barrels per day in November. Instead, OPEC+ decided to keep its 400,000 barrels per day planned production increase intact for now. Prices have increased this week despite the Energy Information Administration’s latest report showing that total domestic crude inventories increased by 2.4 million.
“New Jerseyans continued to see increases at the pump this week despite the recent drop in the gas tax,” said Tracy E. Noble, Manager of Public and Government Affairs for AA Mid-Atlantic. “Elevated crude prices, nearing $80 per barrel, and the existing fuel supplies at local stations are keeping prices unseasonably high and offering no relief to New Jersey drivers. AAA has a variety of resources to help motorists save on fuel:
- Shell Fuel Rewards Program for AAA Members: (http://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.
- Fuel Price Finder (AAA.com/fuelfinder) locates the lowest fuel price in your area.
- Fuel Cost Calculator (FuelCostCalculator.AAA.com) helps budget travel expenses.
- TripTik Mobile (AAA.com/mobile) plots fuel prices along your travel route.
- AAA’s Member Rewards Visa® Credit Card (AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.