Gas prices drop amid increase in supplies, dip in demand

TRENTON, N.J. (AP) - Gas prices in New Jersey and around the nation decreased last week, with analysts crediting factors such as stable crude prices and a small increase in supplies on the East coast.

AAA Mid-Atlantic says the average price of a gallon of regular gas in New Jersey on Friday was $2.79, three cents lower than last week and below the average $2.88 at this time last year.

The national average gas price Friday was $2.74 a gallon, down four cents from last week and well below the average of $2.85 at this time last year.

Analysts say a recent dip in demand may be another reason pump prices are starting to roll back, but it's too soon to know whether the decline is a long-term trend.