Strong demand for home heating oil and new, tougher U.S. sanctions against Russia — the world’s second-largest oil producer — pushed crude prices up 2% last week to levels not seen since mid-August. Oil prices have risen for four straight weeks, which has led to gasoline prices in commodities markets jumping by nearly 8% over the past month.
Adding to the upward momentum is demand for both oil and gasoline. Last week, crude inventories fell by 2 million barrels to 412 million barrels. That’s 17 million barrels below last year’s figure and far below the five-year average of 440 million barrels, according to the Energy Information Administration (EIA). Meanwhile, demand for gasoline was higher than the comparable weeks of 2021 through 2024, surprising some market watchers who expected lower figures due to snow and cold, which typically suppresses demand.
The rise in pump prices is being tempered somewhat by strong inventories of gasoline. The EIA reported another large build in gasoline inventories last week as refiners maintain high output through the winter. Supplies were up 5.9 million barrels — the third straight week of inventory builds above 5 million barrels — and inventories have risen by 36.7 million barrels since mid-November. In the Northeast, gasoline stockpiles now stand about 500,000 barrels above the five-year average.
“The price for a gallon of gasoline can fluctuate week-to-week on supply and demand factors, geopolitical developments and the weather,” said Jillian Young, director of public relations for AAA Northeast. “But ultimately, the price for a barrel of crude oil is the leading indicator for gas prices.”
AAA Northeast’s Jan. 20 survey of fuel prices found the current national average up 6 cents from last week ($3.06), averaging $3.12 gallon. Today’s national average price is 7 cents higher than a month ago ($3.05) and 4 cents higher than this day last year ($3.08).
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $3.08 | $3.03 | $3.03 | $3.14 |
| Massachusetts | $3.02 | $3 | $3.02 | $3.12 |
| New Jersey | $3.10 | $2.99 | $2.91 | $3.07 |
| New York | $3.16 | $3.13 | $3.13 | $3.26 |
| Rhode Island | $2.98 | $2.94 | $2.95 | $3.02 |
*Prices as of Jan. 20, 2025
As of Jan. 20, Mississippi and Texas had the lowest prices in the nation at $2.68 and $2.71, respectively. Hawaii and California held the highest prices in the nation at $4.53 and $4.45, 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.
