NEW JERSEY — Unless your car is reindeer-powered, falling gas prices could add a touch of glamor to your holiday season. Exorbitant fuel costs ruled his 2022, but gas in New Jersey is now cheaper than it was last holiday season.
This isn’t a Christmas miracle, nor is the hearts of oil executives tripled. Industry experts say a combination of factors, including weak demand, rising supply and lingering market fears of a slowing economy, will push New Jersey gas closer to and sometimes below $3 a gallon. There is also
The state average for a gallon of gas totaled $3.29 as of Monday, according to AAA. While higher than the national average of $3.14, it’s still better than New Jersey’s average fuel cost a year ago ($3.46 on average) and well below the June 13 record of $5.05. .
Prices are dropping as the holiday season approaches its peak. AAA predicts 113 million Americans will travel more than 50 miles during the holiday season, marking the third busiest holiday travel season since 2000. But forecasters expect some of these plans to be thwarted by major winter storms.
As AAA’s New Jersey map shows, Sussex County recorded the cheapest average price on Monday at $3.19 per gallon, while Somerset County ($3.46) was the most expensive.
The Auto Club averaged less than $3 a gallon in 20 states.
“Prices for petrol, the main feedstock of gasoline, are hovering around $70 a barrel, $50 less than peaked last spring,” AAA spokesman Andrew Gross said in a statement. “Coupled with seasonally low demand, gas prices could fall a little further before leveling off.”
Domestic gas demand fell slightly last week to 8.26 million barrels per day from 8.36 million, according to the U.S. Energy Information Administration. This coincides with the start of the winter driving season, with shorter days and worsening weather, which means fewer people on the road, AAA said.
Diesel prices still make up for it. Diesel a gallon average in New Jersey was $5.15 as of Monday, up from $3.66 a year ago. But that could improve soon, according to GasBuddy.
GasBuddy’s head of oil analysis, Patrick De Haan, said: “Gasoline price declines may abate, but diesel prices still have room to make up and could drop another 50 cents or more in the coming weeks. ‘ said. “Fuel prices across the board are plummeting, returning to what feels normal to more Americans, which could certainly boost economic sentiment going forward.”