January is typically when gasoline demand — and pump prices — hover near their lowest levels of the year. It’s also when supplies tend to replenish as refiners maintain steady production while drivers log fewer miles. The latest data from the Energy Information Administration (EIA) suggests that the trend might be taking shape in the early weeks of 2026.
Last week, the EIA reported a huge build in gasoline inventories to the tune of 7.7 million barrels — the largest single week increase since the last week of 2024. Supplies now stand 4.3 million barrels ahead of last year as demand significantly cooled to 8.17 million barrels a day, a nearly 400,000 barrels a day decline from the prior week.
Along with more supply and less demand, oil prices remaining in the $58 to $63 range are contributing to the downward pressure on gasoline prices. Although oil prices ended last week about 3.5% higher than the previous week, they remain roughly 20% below where they sat at the start of 2025.
“As pump prices continue to slide on seasonal trends, we’re seeing high supply and low demand push prices lower and lower,” said Jillian Young, director of public relations for AAA Northeast. “If demand remains diminished as inventories climb, oil prices will be another major factor impacting how low prices go this season.”
The AAA Jan. 12 survey of fuel prices found the national average down 2 cents from last week ($2.81), averaging $2.79 per gallon. The Jan. 12 national average price was 14 cents lower than a month ago ($2.93) and 27 cents lower than this day last year ($3.06).
| State | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $2.87 | $2.91 | $3.03 | $3.03 |
| New Jersey | $2.77 | $2.81 | $2.94 | $2.99 |
| New York | $2.99 | $3.02 | $3.10 | $3.13 |
| Massachusetts | $2.91 | $2.94 | $3.01 | $3 |
| Rhode Island | $2.83 | $2.87 | $2.95 | $2.94 |
*Prices as of Jan. 12, 2026
As of Jan. 12, Oklahoma and Arkansas had the lowest prices in the nation at $2.21 and $2.35, respectively. Hawaii and California held the highest prices in the nation at $4.40 and $4.22 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.
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.
