AAA: Average Rhode Island Gas Price Stays Frozen

Northeast gasoline prices are stagnant as oil and gas markets enter the final week of 2024 — a time of year known for low trading volume and sluggish price action. 

Two weeks ago, oil and gas prices were down on average as commodities traders again turned their attention to stubbornly weak global demand expectations through next year, sending oil prices lower by about 3% to end the week. From an inventory perspective, domestic stockpiles of crude oil grew by 900,000 barrels and although total gasoline inventories fell by 2.3 million barrels, Northeast inventories bucked that trend and grew by 1.3 million barrels. 

Demand, meanwhile, remains seasonally strong as 107 million Americans are expected to drive 50 miles or more over the holiday period between Dec. 21 and Jan. 2, according to AAA’s holiday travel forecast. An ample 8.9 million barrels a day were consumed domestically last week, according to the Energy Information Administration, and strong figures are likely when the numbers are tallied for this week. But markets are bracing for a sharp drop in demand after the break — often referred to as the winter demand doldrums — which is typical for this time of year.

Locally, the average gas price in Rhode Island is unchanged from two weeks ago ($2.94), averaging $2.94 per gallon. Last week’s price was a penny higher than a month ago ($2.93) and 18 cents lower than a year ago ($3.12). Rhode Island’s average gas price is 10 cents lower than the national average.  

“Like the weather outside, regional gasoline prices seem frozen in time,” said Jillian Young, director of public relations, AAA Northeast. “Prices could continue to remain stuck in this range as we enter the depths of winter.”

AAA Northeast’s Dec. 23 survey of fuel prices found the current national average up two cents from two weeks ago ($3.02), averaging $3.04 gallon. Last week’s national average price is a penny cheaper than a month ago ($3.05) and eight cents lower than this time last year ($3.12).