How low can gas prices go?
The price of gas at the pump keeps heading downward, and that has some consumers wondering just how low prices can go.
According to Gasbuddy.com, the average price of gas nationally is $3.08 a gallon. At the same time last year, gas prices were $3.35 a gallon. In New Jersey, the average price of gasoline right now is running about $2.92 a gallon, down 29 cents from a year ago.
"I think we're all wondering where the bottom is," said Tom Kloza, co-founder of the Oil Price Information Service.
While it's not atypical for gas prices to drop in October, Kloza said what is interesting about this year is there has been a "kind of crude price collapse," which could translate into some of the lowest gas prices since 2009. "I would have said the chance was one in 100 that we might see an oil price collapse six months ago. Now the chances are about one in a third."
While many oil analysts are wondering where the bottom is, Kloza said he's not among those that think this is a "sea change," or that think the current prices signal a long-term shift to a new normal of cheaper gas.
In some parts of the country, motorists are only paying $2.50 or $2.40 a gallon. Could that soon be a reality in New Jersey?
"I wouldn't be surprised to see some New Jersey prices get there in November or early December," Kloza said.
Whatever that bottom is for gas prices, Kloza said consumers won't need to worry about a price spike for awhile. "You're going to be buying gasoline for 15, 20, 30 cents below what you paid last year, and even more than the previous year for awhile," Kloza said.
Prices should start to come up in spring, according to Kloza, but even then, he doesn't expect to see huge increases.
|Lowest Gas Prices in New Jersey|
|New Jersey Gas Prices provided by GasBuddy.com|