Sub-$4 Gas In NJ? It's Out There, As Fuel Prices Creep Lower

NEW JERSEY — What even constitutes "cheap gas" these days? When compared to prices in past years, finding cheap gas in the Garden State remains as difficult as spotting the Jersey Devil. But several stations around New Jersey sold fuel for less than $4 per gallon as of Monday — a key price milestone for buyers as prices steadily creep down.

Eight New Jersey gas stations sold regular fuel for less than $4 per gallon on Monday, according to GasBuddy:

• Delta (201 Henley Ave., New Milford): $3.79
• Valero (193 Route 17 N, Mahwah): $3.93
• BP (198 Route 17 S, Mahwah): $3.95
• Sunoco (130 Route 17 S, Mahwah): $3.95
• Delta (688 Washington Ave., Carlstadt): $3.97
• BP (1275 Route 17 S, Ramsey): $3.99
• Valero (300 Washington Ave., Carlstadt): $3.99
• Mobil (261 Route 17, Mahwah): $3.99

All of the aforementioned stations are in Bergen County, so it wouldn't make sense for most New Jerseyans to travel to the state's northeast corner just for those savings. Additionally, stations change prices daily, and the list of the cheapest gas prices in New Jersey can significantly change in a day.

But the slow reduction in prices over the past month could mean that sub-$4 gas becomes more widespread in the state sooner rather than later.

Nationally, the average gas price has fallen every day since hitting a record $5.01 per gallon on June 14, with a national average of $4.36 as of Monday, according to AAA. In New Jersey, the average price has declined from a state-record $5.06 on June 13 to $4.46 as of Monday.

Patrick De Haan, head of petroleum analysis at GasBuddy, projected that the national price average could fall below $4 by mid-August. Nine states have already reached the mark, and so have more than 40,000 stations around the U.S., according to GasBuddy.

De Haan anticipates that gas prices will keep falling for a seventh straight week. But other factors, such as natural disasters or upticks in oil prices, could reverse or slow the trend this summer.

"Gas stations still have plenty of room to decline as oil prices remain under $100 per barrel," De Haan said Monday. "However, should the tropics become more active, the decline could eventually reverse. In addition, this week we’ll see GDP data for the second quarter, and if it’s better than expected, we may see oil rally, slowing the descent."

AAA attributes the fall in gas prices to low domestic demand for fuel and oil prices that remain in the mid-$90s per barrel. National gas demand increased from 8.06 million barrels per day to 8.52 million per day last week. But the rate is 800,000 barrels per day lower than last year and in line with demand in July 2020, when COVID-19 kept more people at home.

"Consumers appear to be taking the pressure off their wallets by fueling up less," said AAA spokesperson Andrew Gross. "And there’s reason to be cautiously optimistic that pump prices will continue to fall, particularly if the global price for oil does not spike. But the overall situation remains very volatile."