The Energy Information Administration (EIA) last week reported a 380,000 barrel a day drop in gasoline demand, which fell to 8.56 million barrels a day for the week ending Dec. 26. The figure might seem lower than expected during a busy holiday travel period, but it landed nearly 400,000 barrels a day higher than the comparable weeks in 2024 and 2023.
As demand cools, inventories are up for a seventh straight week, climbing by 5.8 million barrels, according to last week’s EIA report. Steady production and wobbly demand since November have led to 29 million barrels of gasoline being moved into storage over the period. Growing supplies are a major reason why pump prices have steadily ticked down since the start of winter.
Oil prices, meanwhile, remain in a range between $57 and $61 a barrel as markets closely watch developments in Venezuela. The long-term impact on oil and gas prices remains unclear. While Venezuela sits on one of the largest oil reserves in the world, it averaged between 500,000 and 900,000 barrels a day of oil production in 2025. In comparison, the United States averaged about 13.8 million barrels a day of oil production in 2025.
“While geopolitical events do sometimes rattle global oil and gas markets in the short term, the immediate impact on pump prices here in the Northeast could be minimal as oil prices remain stable,” said Jillian Young, director of public relations for AAA Northeast. “Ultimately, regional supply and demand for motor fuels is the key driver of pump prices close to home.”
AAA’s Jan. 5 survey of fuel prices found the national average down a penny from the previous week ($2.82), averaging $2.81 per gallon. The Jan. 5 national average price was 16 cents lower than a month ago ($2.97) and 25 cents lower than this day last year ($3.06).
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $2.91 | $2.95 | $3.06 | $3.02 |
| Massachusetts | $2.94 | $2.96 | $3.02 | $3.01 |
| New Jersey | $2.81 | $2.84 | $2.99 | $2.97 |
| New York | $3.02 | $3.04 | $3.12 | $3.12 |
| Rhode Island | $2.87 | $2.88 | $2.98 | $2.93 |
*Prices as of Jan. 5, 2026
As of Jan. 5, Oklahoma and Iowa had the lowest prices in the nation at $2.21 and $2.32, respectively. Hawaii and California held the highest prices in the nation at $4.40 and $4.26 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.
