Gas Prices Shoot Up Again In NJ As Profits Soar, Oil Trade In Flux

NEW JERSEY — New Jersey's gas prices dipped for about a month following record price increases. But it didn't last long, with the cost per gallon again approaching all-time highs.

One month ago, New Jersey averaged $4.24 per gallon of regular gas, according to AAA. The average price fell to $4.04 per gallon a week ago, but gas prices have since trended in the opposite direction, hitting $4.12 as of Monday.

A combination of factors impacts the situation, according to experts. It's the time of year when people start driving more, the worldwide oil trade faces disruption and many American oil and gas companies continue to obtain record profits.

Efforts to sanction Russia after its government's invasion of Ukraine play a part. But gas prices in the United have steadily increased since November 2020 — more than a year before the Feb. 24 invasion, according to the U.S. Energy Information Administration.

Oil and gas companies Shell, Chevon, BP and Exxon posted record profits last year, totaling $75 billion, according to a report from government-watchdog organization Accountable.US. Twenty-eight major oil and gas companies gave out $394 million to their chief executives in 2021 — $45 million more than the prior year — according to an analysis from The Guardian.

Although New Jersey's gas prices slightly fell for about a month, AAA warned April 18 that the trend may not last long.

"As the days get longer, the weather gets warmer and pump prices dip from their record highs, consumers feel more confident about hitting the road," said Robert Sinclair Jr., AAA Northeast's senior manager of public affairs. "But these lower pump prices could be temporary if the global price of oil increases due to constrained supply."

Meanwhile, New Jersey politicians continue to ways to pass savings to consumers. U.S. Rep. Donald Norcross introduced legislation Thursday that would suspend the federal gas tax, which he says amounts to 18 cents per gallon. Read more: Gas That Costs 60¢ Less Per Gallon? Norcross Explains How Its Possible

In addition, the act would also place large fines on oil and gas companies who commit price gouging as well as create and implement a windfall profits tax to "discourage corporate greed during times of global upheaval and market speculation," Norcross said. These three components would take another 42 cents, if not more, off the price of a gallon of gas, Norcross claims.

"Oil and gas companies are making record profits and working people are paying for it," Norcross said. "This legislation will lower costs at the pump and deter the sort of corporate greed we’re currently experiencing while protecting vital state infrastructure trust funds."

State legislators also proposed a measure March 7 that would allow gas stations to offer self-service. The bill aims to help gas stations with labor shortages, prevent station employees from getting spread thin and reduce prices. Read more: NJ Self-Serve Gas Bill Is About Choice, Assemblymember Says

Meanwhile, here's how much the average gallon of regular gas costs in each New Jersey county as of Monday morning, according to AAA:

1. Somerset: $4.20
2. Essex: $4.18
3. Morris: $4.17
4. Mercer: $4.15
5. Cape May: $4.13
6. Union: $4.12
7. Hunterdon: $4.12
8. Hudson: $4.11
9. Salem: $4.11
10. Passaic: $4.10
11. Atlantic: $4.10
12. Monmouth: $4.10
13. Middlesex: $4.09
14. Ocean: $4.09
15. Bergen: $4.08
16. Cumberland: $4.08
17. Gloucester: $4.07
18. Camden: $4.05
19. Sussex: $4.04
20. Burlington: $4.03
21. Warren: $4.02