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As the summer driving season approaches, drivers in the Garden State are experiencing a drop in gas prices. The average price for a gallon of regular gas was around $3.41 on Wednesday, nearly 15 cents cheaper than last month. If the trend continues, prices are expected to be even lower in the weeks ahead.
The current decrease in gas prices is attributed to a combination of lackluster demand and strong supply, as well as relatively mild oil prices worldwide. "Demand is just kind of shallow,” said AAA spokesperson Andrew Gross to KFYR-TV, pointing to trends seen last year and potential lingering impacts of the COVID-19 pandemic. “Traditionally — pre-pandemic — after Memorial Day, demand would start to pick up in the summertime. And we just don’t see it anymore.”
However, New Jersey's gas prices won't be as low as what drivers in Gulf Coast states are enjoying, such as Mississippi, where the cost of a gallon of gas broke below $3 to $2.98. Gulf Coast states benefit from being near all the big oil and gas terminals and ports in the Gulf Coast, plus a lot of oil drilling wells are located there,” said AAA Northeast spokesperson Mark Schieldrop to northjersey.com. New Jersey doesn’t have as high a refining capacity, Schieldrop said. There are only two refineries in New Jersey, so some gas must get imported through the ports of New York and New Jersey.
Despite the current decrease, experts warn that the future of gas prices is never promised. However, barring any major unexpected interruptions, both Gross and Patrick De Haan, head of petroleum analysis at GasBuddy, say that prices could keep working their way down.