How low can the price of gas fall? With drivers paying the cheapest price to fill their tanks in nearly four years, it is a question many consumers are pondering, with some experts speculating it is possible prices could even drop below $1 per gallon.

Prices already have decreased to below $1.25 per gallon in some parts of the Midwest. With the economy in a freefall, analysts do not rule out crude oil, which traded Friday in the mid-$40 range, sinking to $20 per barrel, a price that could translate to gas at $1 per gal lon.

In New Jersey, the price of unleaded regular fell to $1.60 Friday, the lowest it has been since March 2004. In July, the state recorded its highest ever average price for unleaded at $3.99.

Typically, retail gas prices bottom out between mid-December and mid-February, when the cold weather tends to curb demand, so prices should remain below $2 for at least that long. With the economy in a tailspin, that should keep prices depressed……

In its short-term energy outlook released Tuesday, the Energy Information Administration projects the annual average retail gas price will be about $2.03 per gallon in 2009, saying the current economic slowdown is likely to be more severe and longer than it had originally projected. That should reduce global energy demand and lead to additional declines and crude oil, which it says should average $51 per barrel next year.

Getting to $1 per gallon, however, does not look probable, said Tancred Lidderdale, an analyst at the agency. The last time gas was selling in that range was back in 1998, when crude oil was selling at $14.44 per barrel, he said.

(Written by Tom Johnson for the Star-Ledger NJ)