A primary factor keeping a lid on gasoline prices is the cost of crude oil, which began this week at a four-year low after OPEC+ member countries over the weekend agreed to increase production through June. The decision comes after the Saudi government last week indicated that it supported boosting production even if it led to lower crude prices. That’s an about-face from the group, which implemented production cuts in 2022 in an effort to boost oil prices even if it meant losing global market share to the United States and other oil-producing nations.
If it weren’t for lower oil prices, gasoline prices might otherwise be climbing, based on the most recent supply and demand data from the Energy Information Administration (EIA). After weak numbers through March and most of April, demand for gasoline has rebounded somewhat in recent weeks, with last week’s total surpassing 9 million barrels a day, according to the EIA. The figure is more in line with expectations for this time of year and stronger than the comparable weeks of 2024 and 2023.
The bump in demand comes as gasoline inventories continue to tighten: National inventories declined by 4 million barrels last week, the EIA reported. Refiners have been slow to wrap up spring maintenance activities and are more focused on producing higher-margin jet fuel and diesel, leading to gasoline supplies declining in 11 out of the past 12 weeks. There are now 225 million barrels of gasoline in storage, according to the EIA, down from 229 million the prior week and 227 million last year.
“Cheaper oil can wipe out potential price increases that ordinarily would be caused by higher demand and falling inventories,” said Jillian Young, director of public relations for AAA Northeast. “Additionally, market participants are uncertain whether the recent boost in demand is a sign of things to come or just a blip.”
AAA Northeast’s May 5 survey of fuel prices found the national average up 2 cents from last week ($3.14), averaging $3.16/gallon. The May 5 national average price was 10 cents lower than a month ago ($3.26) and 49 cents lower than this day last year ($3.65).
| Region | Current Price* | One Week Ago | One Month Ago | One Year Ago |
| Connecticut | $3.07 | $3.06 | $3.09 | $3.75 |
| New Jersey | $3 | $2.96 | $3.06 | $3.62 |
| New York | $3.10 | $3.09 | $3.14 | $3.73 |
| Massachusetts | $2.97 | $2.96 | $2.99 | $3.60 |
| Rhode Island | $2.96 | $2.94 | $2.99 | $3.63 |
*Prices as of May 5, 2025
As of May 5, Mississippi and Louisiana had the lowest prices in the nation, at $2.65 and $2.70, respectively. California and Hawaii held the highest prices in the nation at $4.77 and $4.49, 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.
