Oil Analyst Says $5 Per Gallon Gas Unlikely

Gas prices have been on the minds of consumers as the cost of filling up a tank continues to rise. But Chief Oil Analyst of Oil Price Information Service Tom Kloza says the $5 a gallon price tag will not be the norm in New Jersey. He sat down with NJToday Managing Editor Mike Schneider to discuss gasoline prices, consumption and why the recent changes have occurred.

Kloza said gas prices will probably reach their highest levels in the northeast, but topping the $5 mark on a consistent basis is unlikely. “I think $5 gasoline is like $8 hot dogs at Yankee Stadium,” he said. “You have to go out of your way to find it.”

According to Kloza, gas prices are especially high this year in the northeast because two refineries on the Delaware River closed, along with a big refinery in St. Croix, Virgin Islands and others in Europe. Also affecting price is the growing number of people in the middle class in developing countries who want and need fuel, Kloza said, as well as the low demand here. He said the classic supply and demand model doesn’t seem to be working because U.S. consumers are part of the world market. “We have to recognize that oil isn’t our birthright and cheap gasoline isn’t our birthright,” Kloza said.

He said purchasing a fuel efficient vehicle is a wise decision for everyone. “Conspicuous or excess consumption isn’t good,” he said.