Expect NJ Gas Prices To Hit Highest Point In 4 Years: How Much?

Gas prices are going to go to a place they haven't gone to in a long while once summer officially comes.

Leading analysts of the gas industry in New Jersey predict that gas prices will surge past $2.80 per gallon this summer, the highest price since 2014, and perhaps creep ever so close to $3 per gallon.

The New Jersey gas average already hit $2.75 this week, up 6 cents in the last week. The average price is 19 cents higher than a month ago ($2.56) and 34 cents higher than it was on April 16, 2017 ($2.41), according to AAA.

“Prices at the pump have hit their highest point in the last six months, and will likely continue to climb—based on higher crude oil prices, geopolitical tensions driving anxiety regarding oil supplies, and the seasonal switchover to the summer gasoline blend, which typically adds a few pennies to pump prices,” said Robert Sinclair, manager of media relations for AAA Northeast.

The 23-cent gas tax passed in New Jersey last year will also have a lot to do with the price spike. But Tom Kloza, an analyst with the Oil Price Information Service, told Patch that other factors will play a role.

Kloza said volatility in the Middle East will be a factor. He pointed to Iran, where President Donald Trump continues to express concerns over the 2015 nuclear deal. Britain, France and Germany have been working with U.S. officials to draw up a strategy to improve the Iran nuclear deal in return for Trump keeping the pact alive by renewing U.S. sanctions relief on May 12, according to Reuters.

He also pointed to Saudi Arabia, which plans to keep its crude oil production in April below 10 million barrels per day and limit exports since the top OPEC producer wants to end a global supply glut and boost prices, according to Reuters.

"Part of it is the tax increase, but part of it is we move we with the price of crude," Kloza said. "You throw that in with demand" once the summer comes, and demand goes up.

Patch photo