Hopes for an end to the 14-week conflict have been building over the past two weeks, leading to solid price declines across oil and gas markets. Last week, crude prices dropped about 10% from the previous week and closed out May about 18% lower, the largest weekly drop in gasoline prices since the war began. Retail pump prices fell for 11 straight days — but remain about 45% higher than when the war started.
As cheaper oil eases pressure on gasoline prices, narrowing supplies and solid demand over the Memorial Day holiday are tempering the pace of recent price declines. Demand last week jumped by 489,000 barrels a day to reach 9.25 million barrels a day, according to the Energy Information Administration (EIA). That number is 196,000 barrels a day lower than the comparable week last year.
Demand remains strong, though, and coupled with high exports, led to a 15th straight week of shrinking inventories, which fell by 2.6 million barrels last week, according to the EIA. Stockpiles are now 6% below the five-year average and are beginning to raise concerns about supply tightness as the summer approaches. Even with U.S. gasoline production ramping up to 9.93 million barrels a day — the highest level in five weeks — supplies are steadily decreasing as both foreign and domestic demand for U.S. gasoline is outpacing production.
“Northeast drivers are seeing signs of relief at the pump, but gas prices are still higher than they were a month ago and significantly higher than this time last year,” said Jillian Young, director of public relations for AAA Northeast. “Prices are likely to remain elevated until a long-term peace deal is reached and the Strait of Hormuz fully opens.”
AAA’s June 1 survey of fuel prices found the national average down 18 cents from the previous week ($4.50), averaging $4.32 per gallon. The June 1 national average price was 7 cents lower than a month prior ($4.39) and $1.18 higher than last year ($3.14).
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $4.51 | $4.62 | $4.41 | $3.09 |
| Massachusetts | $4.39 | $4.48 | $4.23 | $3 |
| New Jersey | $4.38 | $4.50 | $4.33 | $3.02 |
| New York | $4.53 | $4.59 | $4.36 | $3.12 |
| Rhode Island | $4.30 | $4.45 | $4.27 | $2.99 |
*Prices as of June 1, 2026
As of June 1, Indiana and Oklahoma had the lowest prices in the nation at $3.66 and $3.80, respectively. California and Washington had the highest prices in the nation at $6.03 and $5.70, respectively.
The AAA Gas Prices website is your resource for up-to-date fuel price information. Search for average gas prices on national, state and metro levels by regular, plus, premium and diesel.
Last updated on June 2, 2026 by AAA Staff
Based in Rhode Island, Jillian Young is AAA Northeast’s director of public relations. She regularly appears in local TV, radio and print media to discuss traffic safety, travel, insurance and more.
