Average Gas Prices Fall Below $2 in New Jersey

According to Gas Buddy, New Jersey is the second state to report a statewide average gas price below $2 per gallon, following Missouri, which reported gas dropping below $2 on October 15 – and has watched gas rise to $2.04 since.

Currently, the national average gas price is now down to $2.19 per gallon, the lowest average price since late January.

Since hitting its record high of $3.06 on August 5, the average price of gasoline has been in a bit of a freefall, losing over 25% of its value.  Much of the price drop can be attributed to the just as dramatic fall in the price of crude oil, which is down a little less than 25% since hitting its record high of 78.40 on July 14.

Despite the fact the Organization of Petroleum Exporting Countries (OPEC) recently decided to reduce crude oil production by 1,000,000 barrels per day, many analysts are predicting gas prices will continue to drop throughout the winter – especially if temperatures stay relatively mild.  Not to mention the fact many analysts believe OPEC is bluffing and will reduce output by roughly half of the announced amount. 

Another reason for the decrease in price of gasoline is the switch from “summer blend” fuel to “winter blend” fuel.  Summer blend gas tends to cost between $.10 and $.15 more per gallon because of extra additives that help to cut down on emissions and smog.

Whatever the main reason behind this dramatic decrease in the price of gasoline, it’s pretty amazing that in the span of ten weeks we’ve gone from talking about the very real possibility of $5 gas to actually seeing gas prices drop below $2 in many locations across the country.