NJ gas prices are shooting up – how high will they go?
After dropping for 16 weeks in a row prices at the pump have started climbing in New Jersey.
According to AAA Northeast the average price for a gallon of unleaded in New Jersey shot up 24 cents over the past week, and many drivers are wondering why costs are rising, and how long the price spike will continue.
Tom Kloza, the global head of energy analysis for the Oil Price Information Service said gas prices are going up because OPEC announced an oil production cut, and many refineries are doing maintenance work.
The good news
“The good news is that demand tends to drop as we move into the fall and approach the winter, and some of those refineries are coming back up,” he said.
“I know a lot of people were thinking $3.65, next stop is $4 a gallon. I don’t think it is, I think we’ll basically kind of wobble a little bit lower.”
Kloza said over the next three or four weeks, “we’ll see refineries coming back from maintenance and it will help balance gasoline supplies, gasoline is usually plentiful in the 4th quarter.”
He noted once we get to December, when the European boycott of Russian oil is supposed to begin, prices could become more volatile.
2023 is a big question mark
“Then in 2023, who knows," he said. "I think gasoline will rally in the spring, whether or not it rallies before that, I think is dependent on refinery issues.”
“The first quarter of 2023, you may see a lot of upward pressure on all sorts of hydrocarbons, natural gas, gasoline, jet fuel and diesel fuel.”
He said prices at the pump could drop a bit over the next few months and then rise a bit.
“If you use heating oil, or if you’re booking an airfare and you use jet fuel, or if you’ve got a truck or a vehicle that uses diesel, you’re going to pay through the nose.”