On the one hand, stubborn inflation, tariff fears and expectations for higher interest rates in the coming months are acting as headwinds for oil and gas markets, holding prices down on the assumption of weaker economic activity. On the other hand, markets reacted positively last week to stronger demand and headlines describing peace discussions in the Middle East and between Russia and Ukraine. Overall, crude oil prices ended marginally lower last week — the fourth straight week of declines — and the price for U.S.-produced oil is now 9.1% lower than in mid-January.
Meanwhile, gasoline demand rose last week to a healthy 8.57 million barrels a day, according to the Energy Information Administration. That’s an increase of 250,000 barrels a day week over week. That’s higher than the comparable weeks of 2023 and 2024, and demand so far in 2025 has outpaced last year by roughly 1%. Higher demand is music to the ears of domestic refiners, who have been increasingly concerned about the potential for an oversupply of winter-blended fuel before they officially switch to producing summer blend by April. National inventories of gasoline fell last week by 3 million barrels, which was the first drop in supplies in three months.
“Refiners are beginning the process of emptying their tanks of winter blend and transitioning to summer blend production,” said Jillian Young, director of public relations for AAA Northeast. “Historically, pump prices start climbing in the late weeks of winter, but this year, regional prices are staying put so far, thanks to cheaper oil and sizable gasoline inventories.”
AAA Northeast’s Feb. 17 survey of fuel prices found the current national average up 3 cents from last week ($3.13), averaging $3.16 gallon. Today’s national average price is 5 cents higher than a month ago ($3.11) and 12 cents lower than this day last year ($3.28).
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $3.08 | $3.08 | $3.06 | $3.27 |
| New Jersey | $3.02 | $3.04 | $3.04 | $3.23 |
| New York | $3.17 | $3.17 | $3.15 | $3.30 |
| Massachusetts | $3.03 | $3.03 | $3.02 | $3.19 |
| Rhode Island | $3 | $3 | $2.97 | $3.14 |
*Prices as of Feb. 17, 2025
As of Feb. 17, Mississippi and Oklahoma had the lowest prices in the nation at $2.67 and $2.71 respectively. California and Hawaii held the highest prices in the nation this week at $4.84 and $4.53, 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.
