This post will discuss
gas prices throughout the U.S. and why they are the lowest ever. Above is an interactive map that shows the average price by state according to AAA. Today across the country, the average price is $2.381 per gallon for regular gasoline.
Why So Low?
Overall the price of a barrel ranges from $27 to $42 which is only 25% of the cost in 2008. To prevent the continued supply over demand, Russia, Qatar, Venezuela, and Saudi Arabia agreed to temporary pause drilling to increase price. Harvard Business Review, states that immediately after this occurred, gas prices were on the rise, but after 24 hours, fell again. It is believed that the cost will thrive again soon to counteract the lower cost. The U.S. has begun drilling for oil which creates 4 million barrels greater than 9 years ago.
NJ Gas Tax
Fox Business explains how
the NJ gas tax will impact all New Jersey residents. It is causing an added 23 cents on each gallon as of November 1st 2016. This has not occurred in the last 30 years. Previously, New Jersey had the second to lowest gas price by state. Now, it is seventh overall for highest tax by state. Gregg Laskoski from GasBuddy.com stated when asked about driver’s tax with out of state travel: “They’ll feel it right away.” This tax will range from an added $17 to $55 monthly depending on the type of vehicle driven.
For another video that discusses the prices in different states within the U.S., visit CNN. For further information on the NJ Gas Tax, visit NPR.