New Jersey requires all of its gas stations to be full service (as does Oregon) and is the only state in the country where gas prices still average under $3 a gallon. So how in the world is a full service gas station keeping its gas prices lower than everyone else?

According to Doug MacIntyre, senior oil and gasoline analyst with the EIA, cost has little to do with it - it’s all about local supply and demand conditions.

And it doesn’t hurt that New Jersey has four in-state oil refineries that have yet to have any problems like those in the Midwest, which have caused Chicago’s gas prices to average more than San Francisco’s, which is known for some of the highest prices in the nation. Another beneficial factor is that New Jersey is the main port for gasoline imports from Europe.

Oh, and how about the fact that New Jersey has one of the lowest state gas taxes in the country. Their 14 cents a gallon is grand compared to the national average of 21 cents a gallon. Must be nice.

Makes you wonder if it might be worth moving to Jersey. Nah, the price of gas is too high to get there, at least from my location. Now, if I were in Pennsylvania, right next door, where the state gas tax is 17 cents higher - well, then I might consider it.

The question remains, however, with all of these factors, how can the gas station owners afford to have gas attendants. Eric DeGesero of the Fuel Merchants Association of New Jersey says that most of the FMANJ members make little to no profit from the sale of gasoline. Most of their store profits are from the products they sell inside, like drinks and snacks. Which is unfortunate since many customers simply pay for the gas at the pump and never set foot through the station doors (like me).

Chances are, however, that New Jersey will keep attendants at the pump, since the requirement was implemented in order to create jobs, limit accidents and provide assistance to the elderly. In fact, DeGesero indicates that the last time an effort was made to scratch the full service requirement, the bill was withdrawn just six days after being introduced because public opposition was so high.

Source:
CNNMoney.com: Cheapest gas in the nation - full service

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