Some experts are predicting gas prices will drop below $2 a gallon in parts of the country by the beginning of next year, but New Jersey is not expected to be one of them just yet.

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(ThinkStock Images, ThinkStock)
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While Garden State motorists shouldn't expect gas prices to fall below $2 per gallon, the states where reductions are likely have a few things in common: a drop in oil prices, close proximity to large refineries and low state gas taxes. However, Patrick DeHaan, senior petroleum analyst with GasBuddy.com believes the prediction is premature.

The fact that New Jersey is not on the list is indicative of the northeast, according to DeHaan.

"The northeast generally relies on imported oil at a higher price, so prices are higher than they are in the gulf where they have access to cheaper west Texas crude oil or compared to the Midwest where they import Canadian oil at a far lower price," he said.

According to a USA Today article published Nov. 29, the eight states where gas prices are likely to fall below $2 are Mississippi, Alabama, Louisiana, Texas, Oklahoma, South Carolina, Missouri and Tennessee.

"Eight states is a sizable number of states to say there is going to be a drop without a lot of evidence aside from what we've seen with oil prices sliding. This decline isn't even close to what we saw in 2008. We have a healthier economy," DeHaan said. "I am surprised how far oil prices have dropped. I just don't yet foresee eight states making it under $2 a gallon at least in terms of having those prices being widespread. I would believe that maybe three or four states will see those prices in very limited scope. I'm not ready yet to make a call of eight states seeing prices under $2."

Even so, gas in New Jersey is averaging about $2.69 per gallon and motorists are still spending about 60 cents less per gallon than they were at the same time last year.

"As a nation, the drop in the national average is saving drivers almost $200 million per day and that gap will likely widen by Christmas," DeHaan said.

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