New Jersey drivers woke up to a noticeable jump at the pump this week, with gas prices climbing about 10 cents in just 24 hours as global oil markets reacted to escalating tensions in the Middle East.
While that alone isn’t a major cause for concern, it could imply that gas prices may continue to rise while current events unfold.
We may not pump our own gas, but as of this morning, the average price in New Jersey is $2.92 to $2.99 per gallon, according to the latest AAA data. That’s still below the national average of $3.11—but it pushes many stations back toward the $3 mark, and that benchmark number is likely to increase for the foreseeable future.
The sudden increase follows a sharp rise in crude oil prices on Monday, with oil climbing roughly 6% amid growing concerns about disruptions to tanker traffic through the Strait of Hormuz. The narrow waterway carries a significant portion of the world’s oil supply, making it a pressure point anytime instability rises in the region.
Even though the United States is one of the world’s largest oil producers, gasoline prices are still tied to global markets. When crude oil jumps worldwide, prices at local pumps typically follow.
For drivers, a 10-cent spike may not sound dramatic at first. But on a 15-gallon fill-up, that’s an extra $1.50 per tank.
Will Gas Prices Continue to Increase?
Industry analysts have yet to determine how long the price bump will last. Much will depend on whether tensions ease or oil markets continue to climb in response to potential supply disruptions. New Jersey politicians are heavily divided on where they stand on the current conflict.
For now, drivers across New Jersey are likely to see prices remain elevated compared to last week. If crude continues rising, pump prices often adjust within days. Back in January, gas prices slid to $2.81 per gallon and at the time, seemed to be going down.
Gas prices tend to move faster on the way up than on the way down—and with global violence and uncertainty still unfolding, there’s no telling how high prices can climb.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.