Gas Prices Now HIgher Than Memorial Day
By Phil Gregory, WBGO News
Wall Township. August 30, 2013
It’s costing more now to gas up your car than it did at the beginning of summer, but an analyst in New Jersey expects prices will soon be moving lower.
The average price of a gallon of regular in New Jersey is now $3.49. That’s seven cents more than it was on Memorial Day.
Tom Kloza is the chief oil analyst at GasBuddy-dot-com in Wall Township. He expects pump prices will fall as demand drops after Labor Day.
“I believe that if there’s some sort of stability in the Mideast or a little bit of a calming there that crude oil prices will back off, and gasoline prices this fall will drop to about where they did last year, which is somewhere between $3 and $3.25 in New Jersey and maybe a little bit higher than that nationally.”
Kloza says lower demand is not the only reason why gas prices should move lower.
“It’s much easier to make gasoline in next few months too. You can pack in some cheaper components like butane and other hydrocarbons. You can’t do that during the summer because it blows up some of the spec you need to meet vapor pressure and ozone requirements.”
While gasoline might become less expensive , Kloza cautions you’ll probably be paying more for home heating oil.
“Anyone that gets heating oil deliveries very soon is going to facing prices above $4, and that’s pretty expensive when you consider some people need a thousand gallons or so to go through the fall and winter season.”
© 2013 WBGO News
Get the Rundown from WBGO News
A weekly email from WBGO News with a preview of what's coming up and a taste of what you might have missed.