If you’ve noticed higher prices at the pump, you’re not imagining it. Gas prices in New Jersey are up again this week.
The average NJ price for regular gas is sitting at $4.42/gallon this week—up 15 cents from last week and 45 cents from last month, according to News 12. And it’s not just regular that’s spiking; diesel is seeing record highs, too.
What’s Driving the Cost
Analysts warn prices are not done climbing. Tom Kloza, chief energy advisor at Gulf Oil, warned of a “staggering increase” for gas and diesel over the next 24 to 48 hours, according to Newsweek. Head petroleum analyst at GasBuddy Patrick De Haan said diesel could hit as high as $6.60 a gallon with current trends.
Higher prices at the pump are being driven by the conflict in Iran, which has effectively blocked traffic through the Strait of Hormuz—responsible for a fifth of the global supply. Adding to the issue, a drone strike shut down a 745-mile oil pipeline in Saudi Arabia, adding to the supply strain. The ongoing Russia-Ukraine war, now in its fifth year, is also squeezing global oil supply.
As a result, oil climbed to $108 a barrel overnight on Monday—the highest price since May.
Typically, consumers see a drop in price following Labor Day as demand eases and refiners shift to cheaper, winter-grade gasoline. The conflict throws potential relief into question. The national average for gasoline sits at $4.37/gallon today, according to AAA data.
Real-World Effects
Drivers are already noticing eye-popping numbers on their gas station receipts.
Myles Glebas, a New Jersey pharmaceutical rep who covers accounts across the tri-state area in his own vehicle, said it cost him an extra $15 to fill his tank on Monday. When he fills up again later today, he expects to pay even more.
It’s not just your own tank that’s affected. Rising diesel prices especially have rippling effects on other prices. Around 75% of retail goods are transported by truck, according to RT Trevinio III of Pecos Energy, meaning prices at grocery and department stores are expected to follow the same upward trend.
And though it’s a U.S.-led conflict that’s influencing prices, the effects are felt globally. The New York Times reports fuel-related protests and unrest across several countries, including Guatemala, Syria, Indonesia, Portugal, the Philippines, Bangladesh, and Sri Lanka, due to the higher cost.
Where to Find the Cheapest Gas in NJ
Though the average today sits at $4.42/gallon in New Jersey, that price tag isn’t universal across the state. Wholesale gas specifically offers some relief for consumers. A Costco in Ocean Township was seen selling gas 17 cents below the state average, and a BJ’s at 20 cents below average, according to News 12.
The catch: these prices are only available to those with memberships, limiting who can enjoy the lower costs.
As the conflict in Iran intensifies, consumers are feeling the effects at the gas pump. But it’s not just your own tank that’s more expensive to fill—retail goods, groceries, and more are expected to rise alongside it.
Peter Candia is the Food + Drink Editor at New Jersey Digest. A graduate of The Culinary Institute of America, Peter found a passion for writing midway through school and never looked back. He is a former line cook, server and bartender at top-rated restaurants in the tri-state area. In addition to food, Peter enjoys politics, music, sports and anything New Jersey.
