NJ gas prices top $5 a gallon for first time as summer travel looms
The pain at the pump has hit a new milestone in New Jersey.
On Tuesday, the average price for a gallon of regular gasoline crept past $5 a gallon in the state for the first time, hitting $5.019, according to figures released by AAA Mid-Atlantic. A gallon of gas cost $4.75 a week ago, $4.42 a month ago and $3.06 this time last year.
The price spikes come as global crude oil trades at about $118 a barrel, with no sign of slowing down for the summer travel season, which has seen Americans consider reexamining their travel budgets and plans.
"At some point, drivers may change their daily driving habits or lifestyle due to these high prices, but we are not there yet," said AAA spokesperson Andrew Gross. The spike has been fueled in part by increased demand from summer travel, according to AAA.
Tuesday's figures beat a previous state record from Monday, according to AAA. New Jersey’s gas prices hit their last major spike in September 2013 when they were $3.88 a gallon, according to GasBuddy.com data, which equals $4.90 after adjusting for inflation.
Bergen County's average gas price was $5.01 as of Tuesday, versus $4.99 in Passaic County, $4.97 in Sussex County, $5.06 in Essex County and $5.05 in Morris County.
It was $5.03 in Monmouth County and $5.02 in Ocean County.
In May, the switch from winter to summer blends of gasoline helped worsen the price spikes, according to AAA. The summer blends are less likely to cause damage to cars in the summer and produce less smog, and any impact on price from the switch is expected to phase out by June.
But it’s the latest in the cumulative effects of the Russian invasion of Ukraine and ensuing blockade on Russian oil, and geopolitical tensions between the United States and Saudi Arabia.
Personal-finance publication WalletHub reported in a spring survey that 53% of Americans said they plan to spend less on gas this year than in 2021, while 70% used gas prices as a key factor when making their travel plans.
Granted, there are ways to save on gas, or get the most out of each gallon. Apps like GasBuddy and Waze show the cheapest gas stations by ZIP code, said NerdWallet personal finance writer Kimberly Palmer.
Lower tire pressure and overdue oil changes can also mean worse mileage for a car, she said.
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State leaders and elected officials meanwhile have proposed tax rebates to cover the costs of gas, a temporary suspension of the state and federal gas tax, and an NJ Transit fare holiday for New Jerseyans.
A proposal to nix the state’s 73-year-old ban on self-serve has been touted as a way to cut gas prices because of the potential for lower labor costs, but it’s been a hard sell among elected officials and the public.
Nearly a month ago, a group of 75 gas stations across the state took part in a one-day publicity campaign to lower their gas prices by between 10 and 15 cents to hint at the potential savings if New Jersey motorists could pump their own gas.
“With the cost of gas prices continuing to rise, it’s taking a bigger and bigger bite out of people’s wallets,” said Sal Risalvato, president of the New Jersey Gasoline and C-Store Association, which is organizing the campaign and pushing legislation in Trenton to allow self-service.
Some economists question the potential benefits, noting that any savings in labor costs from getting rid of gas-station attendants could be countered by rising insurance costs for fuel providers. Pump prices are largely determined by tax policies and the global oil market, economists and oil analysts say.
This article originally appeared on NorthJersey.com: NJ average gas price tops $5 a gallon for first time ever
