Motorists Continue To See Lower Prices At The Pump
NEW YORK (CBSNewYork/AP) - Motorists continue to see sharply lower prices at the pumps in New Jersey.
The national average price on Friday was $2.17, down 6 cents from last week. That's also much lower than the national average from a year ago, when motorists were paying $3.31.
Analysts say the lower prices are due to falling crude oil prices.
Motorists Continue To See Lower Prices At The Pump
"You're going to see real big breaks if you use home heating oil, those prices are dropping like a rock. And if you're one of those people that drives a diesel vehicle, you're going to see prices drop 20,30, 40 cents a gallon," Global Head of Energy Analysis for the Oil Price Information Service Tom Kloza told WCBS 880's Monica Miller.
AAA Mid-Atlantic says the average price of a gallon of regular gas in the state on Friday was $2.16, down 11 cents from last week. That's also much lower than the price from a year ago, when motorists were paying $3.33.
"You can have the cheapest prices in the world right now but in many parts of the country, people don't have anywhere to go so demand is at its lowest in January," Kloza said.
Kloza said crude oil is about $60 cheaper than it was last June.
Lines of cars spilled onto Route 1 in Edison, New Jersey, at a Raceway gas station where the price per gallon was $1.77.
It was a great deal, but earlier in the day gas was $1.69, causing traffic to back up so badly employees told CBS2 police asked them to raise their prices to match their competitors.
"They're pretty close in price, within a couple of cents, so usually when you come in this area you know you'll find the cheapest gas," Somerset resident Mohammad Karim said.
Drivers say the Raceway, Fuel one next door and the Edison Fuel Stop are always battling it out for the best deal.
"These three gas stations are probably the cheapest in the area so I specifically go up and down this road just to get gas from here," Karim said.
An employee at the Edison Fuel Stop said the real winners are the drivers.
"I would rather wait and save some money if I can that's the name of the game right?" one customer said.
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