Gas Prices in River Dell Drop to Five-Month Record Low

Just in time for the Fourth of July holiday weekend, gas prices in River Dell and across the country are hitting a record low since January. Both River Edge and Oradell are averaging $3.17 per gallon, according to a report on motortrend.com.

According to Chris Kahn of the Associated Press, the national average fell to around $3.40 per gallon on Tuesday and that Americans are now spending roughly $200 million per day less on gas than in early April, when gas peaked at $3.94 per gallon.

Barring supply disruptions heading into hurricane season — which helped drive pump prices to an all-time $4.11 high in July 2008 — consumers could soon be filling up at prices not seen since December 2010, wrote Gary Strauss of USA TODAY.

On a national level, New Jersey is average $3.305 per gallon for regular while neighbors in New York are paying $3.640 per gallon. South Carolina has the lowest prices at $2.979 per gallon and California is at the highest, $3.812.

Gasoline prices are dropping primarily because of a decline in global crude oil prices, stemming from an easing of tensions in the Middle East and growing oil supplies, bolstered in recent months by the rapid return of Libyan oil exports and increased production from Saudi Arabia. Prices on the East Coast have fallen in part because one large refinery in Philadelphia that was scheduled to be closed by Sunoco at the end of June is now expected to remain open through at least most of the summer while the private equity firm the Carlyle Group negotiates to form a joint venture

But the trade-off for lower oil and gas prices is slow growth and tepid job creation, stated Jill Schlesinger, Editor-at-Large for CBS MoneyWatch. While economists say the drop in prices could put an extra $110 billion in consumers' wallets, Schlesinger opined that the U.S. economy expanded by only 1.9 percent in the first quarter and the past three months has only seen an average of 96,000 jobs created each month, well below the number needed to keep pact with new entrants to the workforce.

Prices could also rise again in the future during hurricane season of if there is another increase in Middle East tensions.

Have a question or news tip? Contact editor Eamon Harbord at Eamon.Harbord@patch.com, or find us on Facebook and Twitter. For news straight to your inbox, sign up for our daily newsletter.