Photo: dkhoriaty / iStock / Getty Images
Gas prices in New Jersey are projected to be the lowest in almost four years this Memorial Day. According to AAA and GasBuddy, the average price for a gallon of gas in the state is $3.03, a slight increase from last week's $2.97 but still among the lowest since the COVID-19 pandemic. Nationally, the average price is $3.08 per gallon, the cheapest since 2021.
The lower prices reflect a decrease in demand for oil due to federal tariff policies, which have affected consumer confidence and financial markets. Nearly half of Americans surveyed by WalletHub reported that tariffs have disrupted their summer travel plans. Despite these economic concerns, AAA predicts that 39.4 million Americans will travel by car over the holiday weekend, with 45.1 million traveling at least 50 miles from home.
The Port Authority of New York and New Jersey expects 5.5 million travelers to use its airports and river crossings during the peak travel period from Thursday (May 22) to Monday (May 26). However, travelers may face challenges such as flight delays at Newark Liberty International Airport due to maintenance work and air traffic controller shortages.
Gas prices typically rise between Memorial Day and Independence Day, but the current low prices are seen as a positive for consumers. Patrick DeHaan, head of petroleum analysis at GasBuddy, noted that the lower prices are like a "psychological tax cut" for drivers. However, the lower prices may also indicate an economic slowdown, according to Thomas Gremillion of the Consumer Federation of America.