The bitter cold, which is expected to deliver a hard freeze to oil-producing regions of the southwestern United States for the first time since 2022, has boosted crude oil prices amid a surge for home heating oil across the country and in Europe — which is facing a similar chilly forecast. Electricity demand is also expected to increase as millions crank their thermostats to cope. Overall, oil prices ended last week up about $2, and could rise further as temperatures plummet this week.
The rise in crude oil prices could begin to put pressure on the price of gasoline, but a sharp drop in gasoline demand and ballooning inventories are staving off significant hikes in our region — for now. Last week, domestic gasoline demand fell 9% to 8.1 million barrels a day, according to the Energy Information Administration. That’s in line with expectations for the post-holiday period. Meanwhile, domestic inventories grew by 7.7 million barrels, with Northeast supplies accounting for nearly 2 million barrels of the increase.
“If it weren’t for cratering demand and swelling inventories, gasoline prices could be on the upswing thanks to the impacts of severe cold,” said Jillian Young, Director of Public Affairs, AAA Northeast. “Oil and gas markets are watching for potential disruptions to production and supplies in southern areas of the United States unaccustomed to prolonged hard freezes.”
AAA Northeast’s Jan. 6 survey of fuel prices found the current national average up 4 cents from last week ($3.02), averaging $3.06 per gallon. Today’s national average price is 4 cents higher than a month ago ($3.02) and 2 cents lower than this day last year ($3.08).
| State | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $3.02 | $3.02 | $3.05 | $3.18 |
| Massachusetts | $3.00 | $3.02 | $3.03 | $3.18 |
| New Jersey | $2.97 | $2.91 | $2.95 | $3.08 |
| New York | $3.12 | $3.12 | $3.15 | $3.32 |
| Rhode Island | $2.93 | $2.95 | $2.96 | $3.06 |
*Prices as of Jan. 6, 2025
Today, Oklahoma and Mississippi have the lowest prices in the nation at $2.55 and $2.60, respectively.Hawaii and California hold the highest prices in the nation this week at $4.54 and $4.38, respectively.
The AAA Gas Prices website is your resource for up-to-date fuel price information. Search for average gas prices by Regular, Plus, Premium and Diesel on national and state levels, as well as metro areas.
