Still under $3.00 in New Jersey -- for full service (self se
New Jersey happily trails gas-price surge
Posted by Joe Ryan May 22, 2007 8:54AM
Categories: News
As the average national price for gasoline has climbed past $3 per gallon, New Jersey is the only state in the country where the average gallon of unleaded gas remains less than $3, according to today's AAA Daily Fuel Gauge Report.
New Jersey's average price per gallon is $2.947. That's 26 cents lower than the national average of $3.209 and 53 cents less than the most expensive state to purchase gas, Illinois, where a gallon sells for an average of $3.481.
The Garden State tends to have lower gas prices than other states because it has the third-lowest state tax on fuels, behind Alaska and Montana.
But prices have been rising steadily since March. They aren't about to stop, analysts said.
"Unfortunately, prices are going to go up a little bit more by the weekend," said Michele Mount, of AAA of New Jersey. The state's all-time high of $3.18 per gallon came Sept. 10, 2005.
The reason for rising prices stems partly from old-fashioned laws of supply and demand, she said.
Demand is up as warmer weather draws more drivers. And supply is down as refineries struggle to switch to a cleaner-burning blend of summertime gasoline required by law.
"The refinery issue is a problem we see every spring," Mount said. She predicted prices would stabilize after the weekend, as demand eases and refineries catch up.
Despite their record profits, oil companies have been slow to install technology to ease the transition from winter to summer blends of gasoline, Mount said.
"It is a problem," she said. "It really starts to cuts into people's budgets."
As the average national price for gasoline nears a record high, New Jersey is the only state in the country where the average gallon of unleaded gas remains less than $3, according to today's AAA Daily Fuel Gauge Report. New...
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