Gas prices fall but remain at elevated levels in NJ

Despite a slight dip of 3.2 cents in the cost of gasoline over the past week, prices at the pump in the Garden State are still averaging $3.64 per gallon, according to GasBuddy.

That price is 17.4 cents per gallon higher than a month ago and 22.1 cents per gallon higher than a year ago.

The current trend follows a sustained drop throughout much of the summer and into the early fall that recently leveled off, combined with the OPEC+ decision to cut production, which led President Joe Biden to release 15 million barrels from the Strategic Petroleum Reserve.

“This sale will complete the historic, 180-million-barrel drawdown the President announced in the spring, which has helped to stabilize crude oil markets and reduce prices at the pump,” the White House said in its announcement. “The President is also calling on DOE to be ready to move forward with additional significant SPR sales this winter if needed due to Russian or other actions disrupting global markets.”

Over the last week, the national average of gasoline has fallen 9.3 cents per gallon, averaging $3.77.

“Average gas prices have declined for the second straight week with significant declines in the West and Great Lakes having an oversized effect on the drop in the national average,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “With oil prices struggling a bit after reaching $93 after OPEC+’s decision to cut production, many regions could see falling gas prices again this week as demand continues to decline seasonally, especially if more data points to a significant economic slowdown.”

The national average is up 10.2 cents per gallon from a month ago and stands 41.2 cents per gallon higher than a year ago. The national average price of diesel has risen 4 cents in the last week and stands at $5.30 per gallon.

“While gasoline prices have seen a large drop, diesel prices have been somewhat mixed, with prices heading higher in the Northeast as inventories drop to extremely tight levels ahead of the heating oil season,” said De Haan. “Motorists are reminded that the decline in gasoline prices is seasonal and should continue into the fall and is unrelated to the coming election. Seasonality is king in driving prices, not the desires or hopes of politicians.”