NJ Gas Nears $4 Per Gallon: Will Prices Keep Going Down?

NEW JERSEY — Gas prices around New Jersey, which surpassed a $5 per gallon average two months ago, continue to fall. The average has gone down to $4.18 per gallon as of Monday, with fuel costs around the nation decreasing for a ninth straight week.

New Jersey gas hit a record high of $5.06 per gallon June 13, according to AAA. The average price for diesel stands at $5.13 — down from an all-time high of $6.34 per gallon May 18, according to the auto club. Meanwhile, the national average for regular gas fell to $3.95.

But experts say several factors will determine whether gas prices around the nation will continue going down. Almost two-thirds of U.S. adults have changed their driving habits or lifestyle since March, according to a AAA survey released July 25. Drivers' top-two changes for offsetting high gas prices were driving less and combining errands.

Gas demand rose from 8.54 million oil barrels per day to 9.12 million per day last week, according to the Energy Information Administration. But the rate was still 307,000 barrels per day lower than last year.

"Falling pump prices may eventually lead to more drivers hitting the road again,” said AAA spokesperson Andrew Gross. "But that hasn’t happened yet. Instead, many drivers are waiting for prices to fall further before reverting to their typical driving habits."

Crude oil prices declined at the end of last week because of concerns that an economic slowdown could cause demand to stagnate or decline. But prices rose earlier in the week after the U.S. Bureau of Labor Statistics reported an 8.5 percent increase in inflation last month — a smaller increase than anticipated.

"I do believe the national average could tick higher this week as the better than expected jobs report last week likely means less demand destruction than anticipated," said Patrick De Haan, GasBuddy's head of petroleum analysis.

See New Jersey gas-price averages here.