Will gas prices keep dropping in NJ?
💲 Gas prices continued to decline over the weekend in New Jersey
🚗 Recent interest rate hikes are suppressing demand for gas
❓ How long can we expect prices to keep dropping?
Gas prices drifted lower over the weekend in New Jersey and are projected to fall even more this week.
A gallon of regular is selling at an average price of $3.39, according to AAA.
That is 5-cents lower than a week ago, but still 7-cents higher than what we were paying last month.
Analysts do expect prices to go even lower. "Despite rising gas demand and recently elevated oil prices, the growth in total supply has helped to limit pump price increases," according to AAA.
However, AAA also cautions that is dependent on demand remaining low.
Part of the reason for the decline, is another interest rate hike by the U.S. Federal Reserve. Fed Chair Jerome Powell indicated more rate increases are likely to help further tame inflation.
"As a result," AAA says, "The market believes oil demand could be less than expected this year, pulling prices down."
Analyst Patrick De Haan with GasBuddy.com declared, "Not a bad way to start the weekend."
De Haan believes "we could see gas prices decline over the next week or two."
Gas prices are less than we were paying a year ago in New Jersey by about a dime per gallon.
Somerset County remains the most expensive place to buy gas in the Garden State, averaging $3.51 per gallon for regular.
LOOK: See how much gasoline cost the year you started driving