NJ Gas Hits $5: 3 Reasons Why Prices Keep Rising

NEW JERSEY — With most pandemic restrictions in the rearview, more people are getting behind the wheel to enjoy the summer. But those trips come with a hefty price, as gas prices in New Jersey average nearly $5 per gallon.

Turbulence in the worldwide oil trade, increased demand for summer travel, and oil and gas companies continuing to collect high profits have contributed to record-high gas prices around the nation.

The average cost for a regular gallon of gas in New Jersey stood at $4.99 as of Monday, according to AAA. Five counties averaged more than $5 — Somerset ($5.08), Essex ($5.04), Cape May ($5.03), Morris and Mercer (both $5.02).

Diesel prices averaged $6.12 per gallon in New Jersey as of Monday.

AAA projected 35 million travelers hitting the road on Memorial Day weekend — the weekend's highest number since 2019. The auto club also expected 860,330 in New Jersey to travel by car for Memorial Day weekend getaways.

"So far, the pent-up urge to travel caused by the pandemic outweighs high pump prices for many consumers," said Andrew Gross, AAA spokesperson. "But 67 percent of drivers recently surveyed told us they would change their driving habits if gas hit $4.50 a gallon. That number rises to 75 percent at $5 a gallon. If pump prices keep rising, will people alter their summer travel plans? That remains to be seen."

While it was Memorial Day in the United States, European Union leaders agreed to cut about 90 percent of Russian oil imports by year's end. Since Russia's Feb. 24 invasion of Ukraine, the E.U. has grappled with how to sanction Moscow despite the bloc's dependence on Russian oil. The E.U. decision has a major impact on the worldwide oil trade, which saw oil prices top $120 per barrel on Monday.

Meanwhile, 28 of the world's leading oil and gas companies made $93.3 billion in combined profits in the first quarter of the year, according to The Guardian. Shell made $9.1 billion in profits from January to March, while Exxon took in $8.8 billion — both about triple what the companies made during this span last year.

Last week, New York suspended its gas tax through the end of the year, becoming the fourth state to do so after Connecticut, Georgia and Maryland. New Jersey legislators have brought forth several bills designed to alleviate the burden at the pump, but none have become law.

State Assemblymember Raj Mukherji (D-33) sponsored a bill that would give drivers with vehicles registered in New Jersey a $400 to $800 rebate and a three-month fare holiday to NJ Transit riders. A bill from State Senator Edward Durr (R-3) would provide a tax rebate of up to $500 per taxpayer to offset gas prices and inflationary costs.