Morristown Gas Dips To $4.25: What's Next For Prices At The Pump?

MORRISTOWN, NJ — If you woke up to gas prices at $4.25 per gallon in just about any other year since the advent of the automobile, you might wonder how prices skyrocketed. But the average price of a regular gallon of gas in the Morristown area actually lowered to that dollar figure after peaking at higher prices.

A gallon peaked at $4.42 on March 10 — the highest average price in the Parsippany metro area since AAA began tracking its prices. But it could take a while before prices approach the local average from a year ago, which totaled $2.95 per gallon.

Gas prices hit a national high March 11 and then began gradually falling. AAA attributes the trend to the price of crude oil lowering since March 8 and a dip in demand. But it's difficult to tell where prices may go next, according to Alec Slatky, AAA Northeast's director of public and government affairs.

“Usually with warmer weather and longer days, spring brings an uptick in gasoline demand as more people hit the road,” Slatky said. “But most drivers say they’ll try to change their driving habits when prices exceed $4 per gallon, so we’ll be watching to see how demand is affected.”

AAA pointed to three things to watch in the oil market this week:

• Foreign ministers in the European Union met Monday to discuss whether they should join the United States in banning Russian energy imports, including crude oil. But they couldn't reach an agreement, with Germany and the Netherlands saying the E.U. was too dependent on Russian oil to cut themselves off now, according to Reuters.
• The Energy Information Administration reported that gasoline demand across the U.S. decreased slightly from 8.96 million barrels per day to 8.94, during a season when demand typically rises. Analysts are looking to see whether this trend continues as the summer driving season approaches.
• In recent days, both Japan and Germany urged the Organization of the Petroleum Exporting Countries to boost production, joining calls from other importers. But, so far, OPEC hasn’t budged.

With crude oil prices falling, why aren't gas prices falling quicker? Because gas stations don't have to, some experts say. Gas stations aren't willing to lower prices just because crude oil becomes cheaper, because they can't anticipate oil prices for the next few days or weeks, Haresh Gurnani, a professor of supply chain management at Wake Forest University, told marketplace.org.

“They would rather take advantage of the consumer getting used to those elevated prices,” Gurnani told the media outlet. “Now, if there is some predictable reduction in prices, then they can afford to pass on some of their savings to the consumers.”

In the meantime, here are the cheapest gallons for a regular gallon of gas around Morristown, according to GasBuddy:

• Raceway, 1710 Route 10 E, Morris Plains: $4.05
• Liberty, 1799 Route 10 E, Morris Plains: $4.09
• Exxon, 109 Morris St., Morristown: $4.17
• Sunoco, 180 Speedwell Ave., Morristown: $4.17
• Amoco, 290 Speedwell Ave., Morris Plains: $4.17
• Sunoco, 299 E Hanover Ave., Morristown
• Lukoil, 151 Washington St., Morristown: $4.19
• BP, 168 Morris St., Morristown: $4.19

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