Confusion over gas supplies has New York area drivers starting to see a rare drop at gas pumps.
A gallon of gasoline dropped below $2 in parts of northern New Jersey for the first time in months, slipping by pennies to $1.96 a gallon yesterday at Hoboken stations.
New Jersey, a barometer of area pricing, is also a favorite fill-up spot for Big Apple drivers avoiding the typical $2.20-a-gallon gas in the five boroughs.
Energy analysts say wholesale prices of gasoline skidded dramatically earlier this week over contradictions in the market about the size of inventories.
Wholesale gas tumbled a sharp 4.55 cents a gallon here on Tuesday and slipped lower yesterday, dropping 0.34 cent to $1.2428 a gallon.
Analysts say traders are hesitant to make any big gambles due to the supply confusion.
The federal government and the industry have been giving contradicting pictures of supplies, said energy analyst Peter Beutel of Cameron Hanover.
In any event, he said, “the consensus now is that gasoline’s leadership in this market is now over.”
“We’ve seen the high in gas prices this year,” Beutel said.