As OPEC cuts production, will fuel prices increase? Here's what NJ drivers need to know

Experts fear gas prices may spike after Saudi Arabia and other OPEC (Organization of the Petroleum Exporting Countries) members vowed to decrease barrel exports by over 1 million per day until the end of the year. New Jersey's average price for regular fuel is about $3.50 per gallon, according to GasBuddy and the American Automobile Association (AAA). Saudi Arabia's announcement may have residents guzzling gas at the expense of their wallets.

Not an easy road for gas prices

AAA senior manager and northeast newsroom representative Robert Sinclair said while fuel prices are cheaper than last year, they are higher than pre-inflation levels caused by the Russian-Ukrainian war. Russia's invasion of Ukraine caused a ripple effect that strained supply lines and increased gas prices.

"As long as that continues and it takes Russian crude off the market, that would tend to keep crude oil prices higher. It's such a fickle market, oil and gasoline, and a convoluted market, so that if something happens here, it can make a big difference there and vice versa," Sinclair said. "There are more factors in place to keep the price of oil and gasoline high than to have it come down."

OPEC decrease means pump price increase

Sinclair said gas prices may have a slight increase due to OPEC's announcement, but lack of demand for oil will likely keep prices stabilized.

"It demonstrates the fact that our good friends Saudia Arabia can cut back a million barrels if they want, but if drivers don't have the stomach to pay for gasoline at $3.50 a gallon or $3.60 or $3.70 in our area, then all the cutbacks in the world won't make that big a difference because people won't drive," Sinclair said.

Gasoline usage is down

According to AAA analysis, fewer barrels are being used per day than in previous years. Pricier fuel is keeping consumers away from the pump, and they are instead spending money on essentials like food and shelter.

"Back in 2019 pre-pandemic, there were 20-30 days consecutively of nine billion barrels per day demand," Sinclair said. "So far this year not that much, and this is despite gasoline prices that are a dollar cheaper than a year ago."

New Jersey in top 20 for most expensive gasoline

The Garden State is the 19th most expensive state for fuel prices. Like the rest of the country, it is still slowly recovering from inflated gas prices, which Sinclair said will take a while to overcome. But there are some areas faring better than others.

People in some counties pay higher rates for gas, while others are spending well below the state average. Somerset County has the state's most expensive regular fuel at $3.602 per gallon. Bergen and Warren counties are tied for the cheapest regular fuel at $3.432 per gallon.

Affluent communities and big cities tend to have more expensive rates, according to Sinclair. He suggests driving slow and steady to burn less fuel in the long run, a tip many New Jerseyans may have trouble adopting.