The average price for a gallon of regular gasoline increased to $3.46 this week from $3.37 last week, according to a report by AAA. This week’s average was three cents more than last month, but 79 cents less than last year, AAA said. The Associated Press has the story:
Gas prices surge in New Jersey, around nation
Newslooks- TRENTON, N.J. (AP)
Gas prices surged in New Jersey and around the nation at large, but analysts say the increase could be short-lived amid a recent drop in demand and the cost of crude oil.
AAA Mid-Atlantic says the average price of a gallon of regular gas in New Jersey on Friday was $3.30, up 10 cents from last week. Drivers were paying $4.37 a gallon on average a year ago at this time.
The national average price for a gallon of regular gasoline was $3.47, up eight cents from last week. Drivers were paying $4.31 a gallon on average a year ago at this time.
Analysts say less expensive oil and fewer people fueling up their vehicles usually lowers prices at the pump. If that continues, they say, prices are likely to drop despite some recent upward price pressure due to the switch to more expensive summer blend gasoline, which has a lower volatility to limit evaporative emissions that normally increase with warm weather.
In fact, this recent increase in gas prices may soon reverse as demand for gas and the global cost of oil have fallen, according to AAA.
“Less expensive oil and fewer people fueling usually combine to lower pump prices,” AAA spokesperson Andrew Gross said in a statement. “However, there is some upward pricing pressure at the moment due to the switch to summer blend gasoline, which may add about 5 to 10 cents per gallon. But if demand and oil costs remain low, this recent price bounce may fade.”
Gas demand dropped from 9.11 million to 8.56 million barrels per day last week, according to new data from the Energy Information Administration (EIA).
