Gas prices dip in New Jersey before switch to summer blend
New Jersey's average gas price dropped by a penny this week to $2.34 a gallon. That is four cents cheaper than a month ago ($2.38) and 33 cents cheaper than a year ago ($2.67).
AAA Northeast spokesman Robert Sinclair Jr. said the reason for the drop in price is lower demand. He said the lower demand may be tied to the weather, which is killing the middle of the country. With the lower demand, the cold weather and the buildup of stockpiles in gasoline and oil, the price of gasoline ticks lower.
Sinclair said The Energy Information Administration reported that gasoline stocks are at an all time high for the week ending Jan. 18. Crude oil stocks are also up.
"There's plenty to go around. So with more supply, less demand....lower prices," he said.
He said the trend should last for the next couple of weeks in New Jersey. That's because the wholesale price of gasoline is $1.37, which is four cents less than a week ago. Sinclair said that 80 cents is usually added on to the wholesale price of gasoline to get the national average. That would be $2.17. But current national average is $2.26, so there is room to go lower.
Missouri has the cheapest gas at $1.90 a gallon. California and Hawaii are tied for having the most expensive gas in the nation at $3.24 a gallon.
Sinclair said enjoy the lower gas prices now because come March that all changes as gas stations begin to switch over to the summer blend.
"Summer blends of gasoline are more difficult to refine, more complicated to distribute and that makes them more expensive and so the price always goes up," he said.