Lower NJ Gas Prices Won't Last Long, Experts Say

NEW JERSEY — A slight decrease in gas prices across New Jersey is unlikely to last long, industry experts said.

Statewide, prices are down about 10 cents per gallon compared to last week. The average price for a gallon of regular gas is $4.192, according to AAA. Prices hit $4, the highest since 2008, earlier this month.

Price trends remain consistent from last week: higher in northern Jersey and lower in the south, generally speaking.

Robert Sinclair, a spokesperson for AAA, told Patch this little bit of a break won’t stick around.

“The east coast is gearing up for the switch to summer blends of gasoline which must be completed by April 15,” said Sinclair, who is the manager of media relations for New York and New Jersey for AAA. “Prior to that, winter gas must be flushed, usually by selling it at a discount in the weeks before the switch. That's where we are now.

“But summer blends are more complicated to refine, raising the price, and different markets around the nation use different blends which cannot be shared, complicating distribution and raising the price.”

Demand for gas is down now, Sinclair said – about 16 percent lower than at this time two years ago. But as the weather warms, more people will be vacationing and stopping to fuel up. And, a greater demand leads to increased prices.

Sal Risalvato, executive director of the Gasoline, Convenience Store, Automotive Association (NJGCA), told Patch the prices put stress on small business owners across New Jersey.

“Just in the last 6 months, the cost has gone up by $6,000 to buy a truckload of gas,” Risalvato said.

“We do better when the price is lower,” he said. “We don’t make more money when the price is higher.”

Risalvato added that price fluctuations make things difficult for gas station owners. They must figure out how much gas to buy, and when, paying for product with an unstable value.

“There’s been no steady stream of downward prices at the wholesale level,” he continued. “These guys are kind of just blowing in the wind with how to price their product and figure out how to pay for it.”

Staffing problems persist at gas stations and convenience stores in the Garden State. Risalvato said that’s been an issue for 10 years. But, he added, employee shortages have further complicated operations for business owners.

Risalvato is a vocal supporter of the Motorist Fueling Choice and Convenience Act.

This bill would give gas stations the option of offering self-serve pumps, while still requiring some stations to continue to offer full-service gas pumps.

Assemblymember Carol Murphy (D-7) told Patch the proposed measure is mainly meant to address those staffing shortages.

"That's what this bill is about, making sure that gas station attendants aren't working so much that they quit,” she said.

That bill was referred to the Assembly Commerce and Economic Development Committee on March 7.

State Senate president Nicholas Scutari (D-22) said he opposes the bill. Scutari said he would reconsider if public sentiment changes or if there is data showing it will reduce costs, NJ Monitor reported.

According to a Rutgers-Eagleton poll conducted two weeks ago, 73 percent of New Jerseyans said they preferred having their gas pumped for them; 22 percent said they preferred self-serve.

See average gas prices in your part of the Garden State here.