Filed Under Rule 424(b)(2)
                                                 Registration File No. 333-98411

                            SOUTH JERSEY GAS COMPANY

                            PRICING SUPPLEMENT NO. 2
                        Dated July 7, 2003 to Prospectus
                             dated December 16, 2002


                       Medium Term Notes, Series B, 2003-2

Interest Payment Dates:      January 15 and July 15, commencing January 15, 2004

Regular Record Date:         January 1 and July 1

CUSIP No.:                   83851M AJ6

         Principal Amount:                  $11,000,000

         Interest Rate:                     4.52%

         Original Issue Date:               July 16, 2003

         Stated Maturity:                   July 15, 2014

         Price to Public:                   $11,000,000

         Co-Agents:                         UBS Securities
                                            Wachovia Securities
                                            A.G. Edwards & Sons, Inc.

         Co-Agents' Commission:             $68,750

         Proceeds, before expenses,
         to South Jersey Gas Company:       $10,931,250

         Redemption Provisions:             None prior to maturity

South Jersey Gas Company registered a total of $150,000,000 principal amount of
Medium Term Notes, Series B.  As of July 7, 2003, South Jersey Gas Company has
priced an aggregate of $85,500,00 principal amount of Medium Term Notes,
Series B, including $11,000,000 principal amount of Notes covered by this
Pricing Supplement; $64,500,000 principal amount of Medium Term Notes, Series B
 may still be issued.

It is expected that delivery of the Notes will be made against payment therefor
on July 16, 2003, which will be the seventh day of the date of this Pricing
Supplement.  Pursuant to Rule~15c6-1 under the Securities Exchange Act, trades
in the secondary market generally are required to settle in three business days,
unless the parties to any such trade expressly agree otherwise.  Accordingly,
the purchasers who wish to trade the Notes on or prior to July 10, 2003 will be
required to specify an alternative settlement cycle at the time of any such
trade to prevent a failed settlement.  Purchasers of the Notes who wish to trade
the Notes on or prior to July 10, 2003 should consult their own advisor.