NJ Gas Prices Drop Below $3 A Gallon In Some Spots

TEANECK, N.J. (CBSNewYork) -- Gas prices in the Garden State keep dropping and are now below $3 a gallon at some stations.

The plummeting prices at the pump is a welcome relief for drivers. AAA is reporting the national average for a gallon of regular is $3.26, about a quarter cheaper than this time a year ago.

EXTRA: Tri-State Area Gas Prices

The average in New Jersey is $3.14. In New York, it's $3.57 and in Conn., it's $3.62

But analysts warn that price whiplash is possible. Sixty-three times this year, at least one U.S. metro area has seen a jump of 20 cents a gallon.

They say the fuel system is increasingly vulnerable to short-term shocks because refiners try to keep supply low to save money, which drives up the cost for consumers.

For now, oil supplies are nearing a record high, so prices continue to dip. But it's hard to tell when they'll bounce back up and increases are almost always sharper than decreases.

Some analysts predict $3 a gallon by Christmas, if not sooner, which would be the lowest price since February 2011.

Others say prices could have a significant impact on the holiday shopping period.

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