Pricing Supplement No. 7  Dated October 29, 1997
(To Prospectus dated July 20, 1993)

                                               Filed Pursuant to Rule 424(b) (3)
                                                       Registration No. 33-49367


PUBLIC SERVICE ELECTRIC AND GAS COMPANY
SECURED MEDIUM-TERM NOTES, SERIES A

================================================================================

CUSIP Number:  74456Q AG 1              Interest Rate:  7.04%
Principal Amount:  $9,000,000           Interest Payment Dates:  January 1 and
                                        July 1, commencing January 1, 1998
                                        Maturity Date:  November 6, 2020
Price to Public:  100% of Principal     Trade Date:  October 29, 1997
Amount
                                        Original Issue Date:  November 6, 1997
These Notes are DTC Eligible and will   Net Proceeds to Company:  $8,932,500
be issued in Book-Entry Form Only
                                        Agents' Discount or Commission: $67,500
                                        Interest From:  November 6, 1997

================================================================================

Optional Redemption Provisions:

   The Notes will not be subject to  redemption  prior to  maturity  either as a
whole or in part at the  option  of  Public  Service  Electric  and Gas  Company
("Company").

Certain Financial Information:

   The following  documents  heretofore filed by the Company with the Securities
and Exchange Commission are incorporated herein by reference:

   1.  The Company's Annual Report on Form 10-K for the year ended 
       December 31, 1996, filed pursuant to the Securities Exchange Act of 1934
       ("1934 Act").

   2.  The Company's  Quarterly  Report on Form 10-Q for the quarter ended
       March 31, 1997, filed pursuant to the 1934 Act.

   3.  The  Company's  Quarterly  Report on Form 10-Q for the quarter ended 
       June 30, 1997, filed pursuant to the 1934 Act.

   4.  The Company's Current Reports on Form 8-K dated January 24, 1997 and
       January 29, 1997, filed pursuant to the 1934 Act.






Use of Proceeds:

   The net  proceeds  from the sale of the  Notes  will be added to the  general
funds of the  Company  and will be used to  finance a portion  of the  Company's
payment for the repurchase of $9,000,000 principal amount of the Company's First
and Refunding Mortgage Bonds, 9 1/4% Series CC on October 31, 1997.

Agents:


       ===
          Merrill Lynch & Co.
       ===


       ===
          Citicorp Securities, Inc.
       ===


       ===
        X Morgan Stanley & Co Incorporated
       ===