Gas prices dip, but remain elevated

Matthew Fazelpoor//July 11, 2022//

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For nearly a month gas prices have trended downward, but at $4.68 per gallon in New Jersey, they remain at a painful level for consumers.

The good news is that the national average has declined for about 27 straight days and here in the Garden State prices are 35 cents per gallon lower than a month ago. The bad news is that even with that drop, which fell from a record peak, prices at New Jersey pumps are still $1.54/g higher than just a year ago.

Currently, the national average is $4.66/g, down 12.8 cents per gallon in the last week.

“The national average has declined for 27 straight days, or four weeks, the longest decline in average gas prices since the pandemic started in 2020. Average gas prices are down nearly 40 cents, with Americans shelling out $140 million less on gasoline every day than they did a month ago,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “We may see the trend last a fifth week, as long as oil prices remain cooperative and don’t surge beyond $105 per barrel, and as long as refinery production of gasoline remains strong.”

The latest trend comes amid a summer travel season reaching pre-pandemic levels as more Americans hit the road.

It also comes on the heels of a back-and-forth between President Joseph Biden and energy executives over the issue of gas prices. Biden, who has called on Congress to pass a federal gas tax holiday, heads to the Middle East this week for a trip with potentially big implications—especially his high-stakes meeting with Saudi Arabia, as the war in Ukraine continues to rattle global supplies and markets.

“We’re not completely out of the woods yet – we could also see a sharp reversal in decline,” said De Haan. “There remains risk of a spike in prices that could send us to new record levels in August, should any disruptions occur. It could be a wild ride, but for now, the plummet at the pump shall continue.”