Pump prices have fallen steadily over the past six weeks as oil and gas markets monitor progress in ongoing peace talks between the U.S. and Iran. While a permanent deal hasn’t yet been reached, signs of progress in the negotiations have helped push petroleum prices steadily lower. Crude prices, which climbed above $110 a barrel at the height of the conflict, settled Thursday between $68 and $71 to end the holiday-shortened trading week. Across the Northeast, the price for a gallon of regular unleaded has fallen 60 to 70 cents below this year’s highest prices in late May.
As gasoline prices fall, demand is holding strong, according to last week’s figures from the Energy Information Administration (EIA). Heading into the July Fourth holiday, total demand climbed 358,000 barrels a day to reach a solid 9.13 million barrels a day, the EIA reported. That’s 491,000 barrels a day higher than the same period last year and follows a trend in recent weeks of higher demand compared to a year ago.
As gasoline consumption reaches peak summertime levels, production is following suit. Domestic refiners operated at 96.6% of capacity last week — the second highest level of the year so far. But strong U.S. and foreign demand for American oil and gas is taking a bite out of inventories and keeping some pressure on prices. Gasoline stockpiles last week dropped 2.3 million barrels to fall 7% below the seasonal average and now sit 18 million barrels below year-ago levels. Crude inventories fell by 9.3 million barrels to the lowest level since May 1984. Imports are also feeling the lingering effects of the war, with considerably less gas coming into the U.S. The latest gasoline import figures amount to half of last year’s import total during the same period, according to the EIA.
“Falling gasoline prices ahead of the Fourth of July were a welcome sight for the record 61.4 million Americans expected to take road trips over the holiday,” said Jillian Young, director of public relations for AAA Northeast. “Even though prices across the country averaged 70 cents a gallon higher than last year, the stronger demand suggests they weren’t high enough to quell the appetite for travel.”
AAA’s July 6 survey of fuel prices found the national average down 7 cents from the previous week ($3.86), averaging $3.79 per gallon. The July 6 national average price was 40 cents lower than the prior month ($4.19) and 65 cents higher than last year ($3.14).
As of July 6, Indiana and Texas had the lowest prices in the nation at $3.04 and $3.30, respectively. Hawaii and California had the highest prices at $5.46 and $5.38, respectively.
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $3.89 | $3.95 | $4.39 | $3.15 |
| Massachusetts | $3.88 | $3.94 | $4.31 | $3.06 |
| New Jersey | $3.83 | $3.86 | $4.27 | $3.12 |
| New York | $4.05 | $4.11 | $4.47 | $3.19 |
| Rhode Island | $3.75 | $3.80 | $4.20 | $3.02 |
Gas Prices by State Over Time
*Prices as of July 6, 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 July 8, 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.
