Oil prices finished the week lower on Friday, with domestic West Texas Intermediate and Brent crude falling by $3.66 and $5.08, respectively, on hopes that negotiations between Iran and Oman to reopen the Strait of Hormuz to oil tanker traffic could eventually ease global supply concerns. However, with no signs that peace talks to end the six-month war will resume, and following renewed U.S. attacks on Iranian targets over the weekend, pressure on oil prices remains, pushing them sharply higher early Monday.
Along with higher crude costs, gasoline prices are under increasing pressure from continued high exports and tightening supply. The Energy Information Administration (EIA) last week reported a 2.5-million-barrel decrease in domestic gasoline inventories, which now sit at the lowest level since August 2012. The decline came even as U.S. refinery output continued at high levels and despite middling domestic gasoline demand throughout summer. Last week, domestic refiners operated at 97.4% of capacity, according to the EIA. That’s the highest weekly utilization rate since September 2018 and the 17th straight week that utilization has topped 90%. Meanwhile, gasoline demand did climb by 355,000 barrels per day last week to reach 9.04 million barrels a day — but still trailed the comparable week last year by 197,000 barrels a day. It was the fifth time since late May that demand topped the 9 million barrels per day benchmark.
“Gasoline prices are facing pressure from multiple fronts, including higher oil prices resulting from the ongoing war and increased exports that are helping to put the squeeze on U.S. supply,” said Jillian Young, director of public relations for AAA Northeast. “The national average in August has been above $4 a gallon for the entire month, setting a record for the most expensive August at the pump.
AAA’s Aug. 31 survey of fuel prices found the national average down a penny from last week ($4.09), averaging $4.08 per gallon. Today’s national average price is two cents lower than the previous month ($4.10) and 90 cents higher than this day in 2025 ($3.18).
As of Aug. 31, Indiana and Texas had the lowest prices in the nation at $3.39 and $3.61, respectively. California and Hawaii had the highest prices in the nation at $5.68 and $5.42, respectively.
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Rhode Island | $4.13 | $4.04 | $4.10 | $3.08 |
| Massachusetts | $4.11 | $4.07 | $4.13 | $3.07 |
| New Jersey | $4.09 | $4.03 | $4.15 | $3.05 |
| New York | $4.21 | $4.16 | $4.22 | $3.17 |
| Connecticut | $4.21 | $4.13 | $4.21 | $3.13 |
Gas Prices by State Over Time
*Prices as of Aug. 31, 2026
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 September 1, 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.
