As oil prices rise in response to escalating tensions between the United States and Iran, pump prices across the Northeast have reached record highs for this time of year. Over Labor Day weekend, drivers nationwide paid more than $4 a gallon on average for the first time on record as crude prices return to the mid-$90-per-barrel range. Prices in global petroleum markets have risen steadily for about three weeks, following renewed attacks across the Persian Gulf and pessimism about the Strait of Hormuz reopening soon.
Along with geopolitical volatility, gasoline prices are facing additional pressure from increasingly tight inventories. In a typical year, gas prices usually peak in mid-summer and are already on the decline by this time as demand cools and refiners replenish domestic stockpiles with surplus production. However, according to the Energy Information Administration (EIA), gasoline inventories for the week ending Aug. 28 fell by 1.2 million barrels, leaving them 6% below the seasonal average, despite U.S. refineries operating at 98% of capacity and at their highest weekly rate since August 2018. Inventories have fallen below 206 million barrels for the first time since November 2022, primarily due to continued strong export demand since the early weeks of the war.
Domestic gasoline demand slid to 8.9 million barrels a day in the week prior to the Labor Day travel period, according to the EIA, continuing a summer-long streak of weaker demand compared to year-ago levels. EIA data show weekly demand topped the 9 million barrels per day benchmark six times between Memorial Day and Labor Day this year, compared to nine times last year.
“When it comes to pump prices, the combination of rising oil prices and declining inventories is pressing down on the accelerator pedal,” said Jillian Young, director of public relations for AAA Northeast. “Along with gasoline prices, petroleum products of all types are facing upward pressure, including diesel, which reached a record national average price of $5.90 per gallon over the weekend.”
AAA’s Sept. 8 survey of fuel prices found the national average up 6 cents from last week ($4.09), averaging $4.15 per gallon. Today’s national average price is 13 cents higher than the prior month ($4.02) and 96 cents higher than this day in 2025 ($3.19).
As of Sept. 8, Indiana and Texas had the lowest prices in the nation at $3.42 and $3.67, respectively. California and Washington had the highest prices in the nation at $5.86 and $5.51, respectively.
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $4.33 | $4.23 | $4.12 | $3.20 |
| Massachusetts | $4.22 | $4.13 | $4.05 | $3.12 |
| New Jersey | $4.27 | $4.16 | $4.03 | $3.17 |
| New York | $4.31 | $4.23 | $4.17 | $3.26 |
| Rhode Island | $4.25 | $4.15 | $3.98 | $3.15 |
Gas Prices by State Over Time
Prices as of Sept. 8, 2026
*Prices as of Sept. 8, 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.
AAA Northeast is a not-for-profit auto club with offices in Rhode Island, Massachusetts, Connecticut, New Jersey, New Hampshire and New York, providing more than 6.9 million local AAA members with travel, insurance, financial and auto-related services.
Last updated on September 15, 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.
