Gas prices dip below $2 in N.J.

Motorists can now find fuel for less than $2 a gallon in some places in New Jersey.

Prices reported on GasBuddy.com Tuesday morning showed stations selling fuel for as low as $1.95 per gallon in Medford.

Also in Burlington County, gas was $1.99 at one Hainesport station, and about a dozen stations in Middlesex County, mostly in Woodbridge and East Brunswick, also reported prices below $2.

In Philadelphia, the lowest fuel price reported was $2.36 per gallon, in the Northeast.

In its latest fuel gauge report, AAA said average gas prices nationwide are at their lowest levels for late August since 2004.

The low prices are due to the steep decline in crude oil cost, the motorist group said, and prices are expected to continue to drop through the fall.

Statewide in New Jersey, gas prices Tuesday morning were averaging $2.27 a gallon, down nearly a dollar from the $3.26 average a year ago. Pennsylvania prices average $2.57 a gallon, also a sharp drop from the $3.46 average last year.

In Philadelphia and its Pennsylvania suburbs, fuel costs $2.59 on average, down from $2.66 last week, $2.84 last month and $3.47 last year.

Prices in Philadelphia's South Jersey suburbs are averaging $2.19, compared with $2.27 a week ago, $2.47 a month ago and $3.18 at this time a year ago.

As in Pennsylvania and New Jersey, prices at the pump are down by at least 50 cents a gallon compared with the same time last year in 48 states and Washington, D.C., according to AAA.

"Crude oil prices have continued to sag, due to persisting global oversupply and concerns about the health of the Chinese economy," the fuel gauge report said.