NJ-11 faces rising gas prices and new energy bills amid climate push
Gasoline costs climb in New Jersey as conflict abroad affects markets, while state leaders advance legislation to fund adaptation efforts.
State Sen. John McKeon of West Orange is renewing his legislative campaign for a bill requiring major greenhouse gas emitters to contribute financially to climate adaptation projects. The proposal comes after recent severe storms and a deadly heat wave highlighted the urgent need for infrastructure improvements across New Jersey.
McKeon argues that these extreme weather events demonstrate why polluters must help pay for the state's efforts to adapt to changing environmental conditions. His push aims to codify financial responsibility for those contributing most significantly to greenhouse gas emissions within the region.
Gas Prices Climb Amid Global Tensions
Gasoline prices in New Jersey are reversing a downward trend and climbing again as geopolitical conflict between the U.S. and Iran heats up, according to AAA data from July 10, 2026. The national average for regular gasoline rose five cents overnight on July 8 to reach $3.84 per gallon after dropping steadily since late May.
In New Jersey specifically, prices are up an average of six cents over the last week with Thursday's price sitting at $3.89 per gallon. While this figure is down 33 cents from a month ago, it remains 79 cents higher than during the same period last year.
The volatility stems from uncertainty surrounding a ceasefire agreement that faces threats following Iranian attacks on shipping in the Strait of Hormuz and subsequent U.S. airstrikes against approximately 90 targets across Iran.
AAA reported price increases before the latest round of military actions, which included retaliatory strikes by Tehran on U.S. allies in Qatar, Bahrain, Kuwait, and Jordan that triggered security alerts hours later.
Regional Price Variations Across New Jersey
Gasoline costs vary significantly across the state with Warren County offering the cheapest fuel at $3.82 per gallon while Cape May County remains the most expensive market at $4.03 per gallon. These local differences reflect broader national trends where nine of the ten most expensive markets in the country charge more than four dollars a barrel.
New York ranks as the eighth most expensive gasoline market nationally with prices reaching $4.06, placing it just above Illinois and Washington D.C., which both sit at $4.05 per gallon. In contrast, states like Indiana offer some of the lowest national averages at $3.21.
The current price surge follows a period where gasoline demand decreased to 8.84 million barrels per day from 9.13 million according to new data released by the Energy Information Administration.
Total domestic gasoline supply also declined during this period, dropping to 212.1 million barrels from 214 million while production fell to an average of 9.7 million barrels per day last week.
Crude Oil Markets and Inventory Levels
At the close of trading on July 8, benchmark West Texas Intermediate crude oil rose $3.08 to settle at $73.52 a barrel as traders reacted to ongoing instability in global energy corridors. Prices are currently hovering in the $70-per-barrel range but could rise further if volatility persists in critical shipping lanes.
The Energy Information Administration reports that U.S. crude oil inventories rose by 3 million barrels from the previous week, bringing total stockpiles to 411.4 million barrels despite recent market fluctuations.
Current inventory levels remain about six percent below the five-year average for this time of year, suggesting potential supply constraints if geopolitical tensions continue to escalate without resolution.
Crude oil prices had previously peaked at $4.56 per gallon on May 21 before dropping steadily until recent events caused them to climb back toward higher levels seen earlier in the spring season.
State Energy Legislation and Relief
Governor Sherrill signed energy bills along with a utility relief package aimed at addressing rising costs for residents across New Jersey, though specific details of these measures were not provided in available reports. This legislative action coincides with broader efforts to manage the economic impact of fluctuating fuel prices on households.
The timing of these signings aligns with AAA's report that gasoline demand has decreased recently even as supply levels have also contracted across domestic refineries and distribution networks.
Residents facing higher pump prices may find some relief in Warren County where costs remain lower than the state average, though those in southern counties like Cape May continue to pay significantly more for fuel.
Questions residents are asking
How much has gas gone up in New Jersey compared to last year?
Gasoline prices in New Jersey are currently up 79 cents per gallon since the same time last year, with Thursday's price reaching $3.89 despite being down 33 cents from a month ago.
Where is gas cheapest and most expensive in the state?
The cheapest gasoline can be found in Warren County at $3.82 per gallon, while Cape May County has the highest prices in New Jersey at $4.03 per gallon.
What is causing gas prices to rise again?
Prices are climbing due to uncertainty over a ceasefire between the U.S. and Iran following attacks on shipping in the Strait of Hormuz and subsequent military actions by both sides.
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