Ready or not, the price of gasoline could soon hit 3 dollars a gallon in most parts of the Jersey - probably in the next month or so.
Tom Kloza, the Chief Analyst for the Oil Price Information Service says prices at the pump are moving higher because "the price of crude - which has gone up about 11 dollars a barrel since Groundhog Day - reflects optimism in the economic recovery."
At the same time he says "refiners are manufacturing less, because they're so pessimistic about the prospects for gasoline…so when you have those two out there, you get higher crude prices, you get pretty minimal U.S. refining production, and combine that with the normal seasonal tendency for prices to move up as we switch to spring and summer blends, and you get a gasoline rally - it happens pretty much every year."
Kloza adds once gas prices reach the 3 dollar a gallon level, they will probably fall back a bit later on in the summer.
"I don't think it's going to become the new standard for 2010" he says, "there's still high unemployment, and it does represent a bit of a drag on the economy…I think that things are a bit more sluggish than everyone - all the advocates on Wall Street - might have one believe."
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