As consumers brace for price impacts from President Donald Trump’s global tariffs, one area where costs are not rising is at the gas pumps.
AAA Northeast reported Monday that gas in Massachusetts was averaging $2.97 a gallon, up 1 cent from the week before and down 2 cents from a month ago.
Heading into peak driving season, the average gas price in Massachusetts is 63 cents per gallon lower than at this time in 2024, when gas was averaging $3.60 per gallon. Nationally, gas is averaging $3.16 a gallon, down 10 cents a gallon from a month ago and 49 cents lower than this time last year.
Crude oil prices began the week at a four-year low, and are a “primary factor” in the current gas prices, AAA said, adding that if not for the lower oil prices, gas prices might be climbing based on supply and demand data.
“Cheaper oil can wipe out potential price increases that ordinarily would be caused by higher demand and falling inventories,” said Mark Schieldrop, AAA Northeast spokesperson. “Additionally, market participants are uncertain whether the recent boost in demand is a sign of things to come or just a blip.”
The prices include taxes. The Massachusetts gas tax is 24 cents per gallon, and the federal government’s gas tax is 18.4 cents a gallon, according to the Massachusetts Budget and Policy Center.
MassBudget estimated the state gas tax generated $769 million in fiscal 2018. The fiscal 2026 state budget bill that’s now before the Senate counts on $742 million in state gas tax revenue.
