Big Drop in Gas Prices Continues in NJ, But For How Long?

Gas prices continued to fall over the weekend in New Jersey.

Pump prices are now down 7 cents per gallon in the last week, according to AAA, for a statewide average of $3.20 per gallon for regular gas.

The cost of gasoline in New Jersey has been falling at a rate of about a penny per day for weeks.

What we are paying today is 7 cents cheaper than a week ago and prices have now fallen 25 cents in the last month. New Jersey drivers were paying $3.65 for regular one year ago.

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The cheapest gas, on average, can be found at stations in Burlington county at $3.08 a gallon.

Some residents report gas has dropped below $3 per gallon at members-only stations, like Costco, and at some off-brand gas stations.

Analyst Patrick De Haan at GasBuddy.com says the most common price nationwide is $2.99 a gallon, although the national average is $3.36 per gallon, according to AAA.

New Jersey has seen among the biggest declines in gas prices over the last week. Texas remains the cheapest place to buy gas, averaging $2.96 a gallon. California remains the most expensive, seeing prices increase 7 cents in the last week.

While demand for gas remains relatively low, the cost of oil is what has been driving prices lower.

"The cost for oil accounts for 55% of what we pay at the pump,” said Andrew Gross, AAA spokesperson, "so higher or lower oil costs will play a major role in the price we pay when fuel-ing up."