JERSEY CITY, N.J. (CBSNewYork) — Drivers have been taking a hit to their wallets thanks to pumped up gas prices.
Normally at this time of the year, drivers see a dip, but something’s pushing prices higher, and many are wondering if there is any relief in sight.
Prices had been cruising along at a wallet friendly price until recently.
“Considering I’m a middle wage worker, it affects me a lot actually,” David Hancock said.
Hancock commutes 40 minutes into Manhattan, and is feeling the pain.
So what is driving the upward tick.
“I think people got used to artificially low gas prices. What has changed in the past few months, the price of crude oil has gone up dramatically,” Sal Risalvato, Executive Director, NJ Gasoline, C-Store, and Automotive Association said.
The price of crude oil was about $30 a barrel two years ago, it’ snow more than $60 a barrel according to the U.S. Energy Department.
The Organization of the Petroleum Exporting Countries cut production about a year ago. Risalvato said we are just now feeling the effects.
Gas was at $2.85 a gallon in Jersey City on Wednesday.
Demand has remained the same.
“Anytime supply drops, then that makes people trading the oil on market increase price because the ratio of supply to demand has changed,” Risalvato said.
Amir Khan said every penny counts.
“The prices are going up. I think the government needs to do something. Need to bring down the price, going to $3 almost,” he said.
In New Jersey, drivers pay about 10 cents more per gallon to have gas pumped by an attendant, along with a 23 cent per gallon gas tax.
“As of right now we can’t say these numbers will drop, however I do believe if driving season does not turn out to be a higher demand as we’re expecting now, I think you will see the price drop,” Risalvato said.
According to an energy trader, gas price futures generally have been rising for the past month by 4.88 percent.