Gas Prices Plummet Across NJ


Any driver, new or old, is enthused with the gas prices being as low as they are. Gas prices have taken a recent plunge due to new oil drilling in the Gulf of Mexico. Domestic oil has also been made more accessible with the use of new techniques like fracking, which is drilling on land. With this said, American oil refineries are now buying less expensive, foreign oil barrels.
Gas prices have also fallen due to the fall in the price of crude oil. When the price falls, companies that refine the oil have lower input costs. This means the cost at the pump falls because of cheaper production prices since crude oil does account for 62% of the cost of regular gasoline.
On top of all of this, the United States is also the top producer in natural gas at the moment and has been at the top of its energy-producing game. Demand in Europe has slowed because of their economy, leaving more oil in the United States while Saudi Arabia is also overflowing with oil, which cheapens the price for world buyers. All of these factors will contribute to drivers seeing the price fall over the next couple months.