N.J. is final state to suffer $2-a-gallon gas

Reuters via MSNBC

NEW YORK – New Jersey on Tuesday became the last U.S. state to suffer an average retail price over $2 a gallon for gasoline, which keeps breaking nationwide records daily, the AAA motor club said.

Pump prices in New Jersey hit an average $2.02 a gallon for regular, though gas stayed the cheapest in the country thanks to lower taxes and nearby refineries, pipelines and ports.
“That keeps us on the bottom, which is a good thing, being on the bottom,” said Tracy Noble, a New Jersey resident and public affairs specialist for AAA’s Mid-Atlantic region.

The national average for self-serve regular gasoline hit $2.20 per gallon Tuesday, AAA said in its daily survey of more than 60,000 service stations. That’s 13 percent higher than just a month ago.

While gasoline prices are at record heights in nominal terms, when adjusted for inflation they remain below the peak of $3.00 seen in 1981.

“It’s starting to have its effect on consumers, being above $2,” said Noble. “People are going to be more conscious of where they are going to buy their gas.”

Federal Reserve Chairman Alan Greenspan Tuesday said it will be “of critical importance” to consumption how many of the nation’s 200 million drivers switch to more fuel-efficient cars.

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