New Jersey Gas Prices Expected To Drop [POLL/AUDIO]
The average price of gas in Jersey is around $3.75 a gallon, but as the leaves are falling off the trees, prices are soon expected to drop as well.
Tom Kloza, Chief Analyst at the Oil Price Information Service, expects over the next month prices will go down by about 25 cents a gallon.
"I think it's a 50-50 proposition - whether we're below that or above that on average by election day," he says, "Generally, people are going to pay about what they paid in late October last year and what they paid in November last year, which implies numbers perhaps just a little bit south of $3.50 a gallon."
Kloza adds, "I see it being choppy, but I see a light chop and lower prices. I think most of the decreases are going to occur in November and December….October is a little bit messy because we have very, very low basic gasoline inventories. That's a consequence of a cluster of refineries problems in the late summer, and it's also related to Hurricane Isaac knocking out some production…But we'll be okay, we're seeing demand that's probably about 2 ½ percent below last year, we'll start to get some European gasoline by the end of the month."
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"Last year we saw a near collapse in gasoline demand in November - we might see the same thing this year…By the end of December in New Jersey, we'll probably hit a bottom - somewhere between $3.25 and $3.50, and then, I hate to tell you this, but it's as predictable as weather trends. There will be another run-up in the spring, there will be petro-noia that this is the year there's not enough fuel, and we'll see an unusually high top. And then, we'll see a similar pattern where if everything works during the summer, we'll see prices very similar to this year:10 and last year."