Crude oil and gasoline prices have steadily declined for about a month on building anticipation that the war with Iran might be nearing its end, and cargo flow through the Strait of Hormuz could resume. Last week’s announcement of a preliminary peace agreement helped nudge petroleum prices even lower. By the end of trading on Friday, crude prices were 6% lower week-over-week, settling between $75 and $80 a barrel — the lowest level since early March and more than $30 a barrel lower than their peak in April.
But tightening inventories of oil and gasoline are keeping some pressure on pump prices: U.S. crude inventories fell by 17.2 million barrels last week, reaching the lowest level since March 1985, according to the Energy Information Administration (EIA). Inventories of gasoline also declined by 900,000 barrels and are now 6% below the five-year average, the EIA reported. The drawdown came even as gasoline production climbed 356,000 barrels a day to more than 10 million barrels a day — the highest rate in more than 10 months — as refiners ramp up output to meet summer demand. Total domestic demand last week reached 9.21 million barrels a day, the highest level in three weeks. Exports remain elevated as countries around the world turn to the U.S. to replace product previously delivered via the Strait of Hormuz. Over the past four weeks, gasoline exports have trended about 20% higher than last year. Oil exports have averaged 23% higher over the same period.
“Recent declines in oil and gas prices have coaxed the national average below $4 a gallon for the first time since March — welcome relief at the pump,” said Jillian Young, director of public relations for AAA Northeast. “While prices have decreased significantly, markets remain uncertain about the timetable for Persian Gulf exports to return to prewar levels.”
AAA’s June 22 survey of fuel prices found the national average was down 14 cents from the previous week ($4.06), averaging $3.92 per gallon. The June 22 national average price was 63 cents lower than a month ago ($4.55) and 71 cents higher than last year ($3.21).
As of June 22, Indiana and Oklahoma had the lowest prices in the nation at $3.32 and $3.41, respectively. California and Hawaii had the highest prices in the nation at $5.57 and $5.52, respectively.
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $4.06 | $4.21 | $4.64 | $3.16 |
| Massachusetts | $4.05 | $4.17 | $4.49 | $3.08 |
| New Jersey | $3.97 | $4.10 | $4.53 | $3.14 |
| New York | $4.23 | $4.36 | $4.60 | $3.20 |
| Rhode Island | $3.91 | $4.05 | $4.49 | $3.06 |
Gas Prices by State Over Time
*Prices as of June 22, 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 2, 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.
