Strong gasoline demand over the holidays and ongoing tensions in the Red Sea aren’t enough to prevent gas prices from ending 2023 with declines.

 As oil markets continue to watch for impacts from shippers reliant on the Red Sea to move cargo, American refiners continue to produce gasoline at a strong clip. Consequently, regional inventories remain plentiful even as Americans traveled at near-record levels between Christmas and New Year’s Day. 

Rhode Island’s average gas price is down three cents from last week, averaging $3.08 per gallon. Tuesday’s price is 22 cents lower than a month ago, and 17 cents lower than Jan. 2, 2023. Rhode Island’s average is two cents lower than the national average.

 “Ample supply of gasoline is keeping a lid on prices and oil traders seem to be shrugging off the situation in the Red Sea for now,” said Mark Schieldrop, Senior Spokesperson for AAA Northeast. “Prices could remain lower for the time being since demand typically cools in January.” 

AAA Northeast’s Jan. 2 survey of fuel prices found the current national average to be two cents lower than last week, averaging $3.10 a gallon. Tuesday’s national average price was 14 cents lower than a month ago and is 11 cents lower than this day last year.