Last week, oil and gas markets reacted optimistically to reports of cooling tensions in the Middle East, sending crude prices sharply lower: By the close of trading Friday, domestic West Texas Intermediate crude fell about $4.50 per barrel, while Brent crude declined by $6.50 a barrel. Prices fell even more in overnight trading on Sunday, declining by an additional 4.5% amid reports the U.S. and Iran could resume negotiations in the coming days.
Along with easing oil costs, gasoline prices are facing less pressure thanks to near-record gasoline production by U.S. refiners, which are chasing historically high premiums for gasoline and other refined products. Domestic refiners operated at 97.2% of capacity last week, the highest weekly rate since the final week of 2018, according to the Energy Information Administration (EIA). Total gasoline production climbed by 178,000 barrels a day to 9.87 million barrels a day, the EIA reported. Production has averaged about 1.5% higher over the past four weeks compared to the same period last year, according to EIA figures. Meanwhile, gasoline demand rose modestly by 94,000 barrels a day to 9.04 million barrels a day — still 111,000 barrels per day below the comparable week last year. It was only the fourth time this summer demand exceeded 9 million barrels per day.
“Drivers might feel like they’ve been on a seesaw lately as pump prices rise and fall in response to developments in U.S.-Iran relations,” said Jillian Young, director of public relations for AAA Northeast. “Over the long term, it remains unlikely that prices will truly settle until a lasting peace deal is reached.”
AAA’s Aug. 3 survey of fuel prices found the national average down 2 cents from the prior week ($4.11), averaging $4.09 per gallon. The Aug. 3 national average price was 27 cents higher than last week ($3.82) and 94 cents higher than last year ($3.15).
As of Aug. 3, Texas and Indiana had the lowest prices in the nation at $3.59 and $3.60, respectively. California and Hawaii had the highest prices at $5.65 and $5.45, respectively.
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $4.20 | $4.21 | $3.91 | $3.12 |
| Massachusetts | $4.12 | $4.13 | $3.88 | $3.07 |
| New Jersey | $4.13 | $4.18 | $3.83 | $3.08 |
| New York | $4.22 | $4.23 | $4.07 | $3.17 |
| Rhode Island | $4.09 | $4.13 | $3.76 | $3.04 |
Gas Prices by State Over Time
*Prices as of Aug. 3, 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 August 5, 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.
