By:  Daniella Doria

A new record high for gas hit the Garden State.

Prices in New Jersey are now averaging over five dollars a gallon for the first time ever. The New York Post reports, the average gas price in New Jersey has surged about 12% from last month when it was $4.421 a gallon. This time last year, New Jersey residents were paying an average of $3.061 at the gas pump, the AAA said.

Surprisingly, the prices in New York are less than New Jersey, with the average gas price was $4.88 per gallon as of Tuesday, down 4 cents from last week but still 43 cents higher than a month ago, the AAA said.

AAA says that people are still driving more than ever as they return to work and recreational activities that they missed during the pandemic. A rise in airfare is also sending more people on road trips.

Emily Crane writes, “analysts have also forecast that more states could hit the $5-per-gallon average by the July 4 holiday as demand is expected to surge — even as supply remains tight. Various factors have contributed to the soaring gas prices — which were $3.04 per gallon on average a year ago — including a strong rebound from COVID restrictions, disruptions in the global oil market and Russia’s invasion of Ukraine.

Drivers in California are really in for sticker shock as prices in one town reached nearly ten dollars a gallon. The owner of one gas station in Mendocino is charging $9.60 a gallon as of Friday, June third. It’s the only place in town, so it’s not surprising the cost would be high, but the owner, Judy Schlafer, says that “she paid $50,000 for an 8,880-gallon delivery this week, which she has 10 days to pay for. Three months ago, the same load would have been about $30,000.” This forces her to raise her prices and still not make her money back. “I’m going to be lucky if I make the year with all the fees, the regulation, the payroll fees,” Schafler said. “If it continues the way it is, Mendocino won’t have a gas station next year.”

The New York Post reports, oil prices rose for the sixth straight week, with the benchmark West Texas Intermediate settling Friday at $118 a barrel, up 3.3%. Surging crude prices reflect short supply in the US, which started when demand plunged during COVID lockdowns. Demand came back, but production and supply have not.

“Refinery capacity has diminished due to COVID,” De Haan said. “We don’t have as much ability to refine as much fuel as the market is consuming. Prices continue to climb, it’s absolutely amazing to see how high prices currently are.”