PENNSAUKEN, N.J. (CBS) – Drivers out on the road in New Jersey may mistake some gas station signs as mirages. Gas prices are dropping under three dollars a gallon for regular unleaded gasoline if you are paying cash.
Motorists can pay as little as $2.96, $2.97 and $ 2.99 at stations on Rte. 130 in Collingswood. A station nearby on Rte. 130 in Pennsauken is also offering regular unleaded to cash paying customers for $2.99 a gallon.
“It’s nice, it’s long overdue,” said Remo Saraceni who drives for work everyday.
“Its the cheapest around,” said Cameron Johnson who was filling up his Dodge Charger.
Gas prices haven’t been under three dollars in New Jersey since January 4th 2011 according to AAA.
Harry Millner, who drives a large suv, says he’s relieved.
“I get about eight miles to the gallon.”
Millner says he spends about $150 per week on gas.
“I think it will save me about $50 a month”, said Saraceni, who took the time to calculate his potential savings.
“Our information is that it dropped 70 cents since before Memorial Day,” said Rich Bradley of AAA.
Bradley says gas prices typically drop this time of year. He says it’s a matter of supply and demand.
“You have people with an excess supply and they drop the price to entice consumers”, said Bradley.
Sunny Singh, who runs Speed Gas in Vorhees, adds the price of oil and local competition also drive his price, which is at $3.09 a gallon for regular unleaded.
He says, since there are only a few other stations nearby he can keep his prices a little higher.
Gas prices in New Jersey are typically lower because of the state’s 10.5 cents per gallon tax compared to Pennsylvania’s, which is 31.2 cents per gallon and Delaware’s, which is 23 cents per gallon.
The federal tax is 18.4 cents per gallon.
Reported by Robin Rieger, CBS 3