Gas prices up 46.8% in May on Long Island, 3rd double-digit spike since March

Gasoline prices on Long Island and in the metropolitan area climbed 46.8% last month overall compared with a year ago, the third double-digit increase since March and the highest so far.

Skyrocketing pump prices led to higher inflation overall in both the New York area and nationwide in May with the consumer price index rising at its quickest pace in three years. The index was released on Wednesday by the federal Bureau of Labor Statistics. 

The ongoing war in Iran, which has disrupted oil production and transportation for more than 100 days, is behind the high cost of gasoline, experts said. The conflict began on Feb. 28 with the United States and Israel bombing Iran’s capital Tehran and other cities. 

In the New York area, gasoline prices rose in May at their fastest rate in nearly four years.

However, they've moderated this month. The average price of a gallon of unleaded was $4.25 on Wednesday, down from $4.41 on June 1, according to AAA.

Economists predicted pump prices would remain elevated as long as the Iran war rages — and consumers burdened by the higher cost of living would continue to alter their shopping habits as a result.

Gasoline was a driving force in the price index for the 25-county region that includes Long Island rising 5.1% last month compared with May 2025. That rate of growth is the fastest since February 2023.

“Over 5% starts to get people concerned because [increases in the index] should really be in the 2% to 3% range,” said Steven Kent, chief economist for the Long Island Association business group. “Getting to over 5% is difficult for people.”

That’s what consumers said on Monday at the Ridgeway Plaza shopping center in Setauket.

Shirley Richardson, a homemaker from Port Jefferson, said she and her husband, Bob, have cut back on nonessential purchases. 

“With gas as high as it is, you’ve got to postpone things you really want to do until things improve,” said Richardson, 47, referring to the couple's decision to cancel a trip to Europe.

Gasoline isn’t the only commodity whose price rose last month.

The cost of fruits and vegetables climbed 10% in May compared with a year ago. Nonalcoholic beverages and residential rent were up 6.9% and 4.4%, respectively, according to the statistics bureau.

Nationally, consumer prices rose 4.2% last month compared with May 2025. This is partly due to a smaller increase in the cost of gasoline compared with the New York area.

Pump prices were up 40.5% nationwide year over year, or 6.3 percentage points lower than locally.

Experts said Wednesday’s inflation report, while troubling, isn’t enough to cause the Federal Reserve’s interest-rate setting committee to act when it meets next week. President Donald Trump has urged new Fed chief Kevin Warsh to cut rates.

“Inflation was hot but not as hot as expected,” said Cooper Howard, a director at the Schwab Center for Financial Research, a unit of the Charles Schwab brokerage in Texas. “We expect the Fed to remain on hold for the time being.”

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.