Gas prices in the West Coast states are soaring due to refinery issues in Puget Sound and California, and reports of an outage at the Olympic Pipeline. Planned and unplanned maintenance at refineries has caused wholesale prices to shoot up and those increase are being passed on to consumers at the pumps. In addition, there are reports that the Olympic Pipeline, which carries fuel from Washington refineries to Portland, is down. Some relief should come soon due to the upcoming switch to winter-blend fuel starting September 15 in Oregon. For the week, the national average for regular jumps adds one cent to $3.19 a gallon. The Oregon average jumps 16 cents to $4.14 a gallon. This is the biggest week-over-week jump for a state in the nation and the highest price for the Oregon average since June 2024.
“Gasoline supplies on the West Coast are very tight, due to refinery maintenance, and as the last of the summer-blend gas is produced. Oregon can start selling winter-blend gas on September 15. This fuel costs less to produce and should help bring some relief at the pumps,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “Meanwhile, drivers in the Midwest are already seeing lower pump prices, now that the BP refinery in Whiting, Indiana is back online. This refinery, which is he largest in the Midwest and the largest inland refinery in the U.S. had to stop operations last month after storms brought rain and flooding to the area.”
Hurricane season remains the wildcard. There’s still the potential of a major storm that could impact production and distribution of oil and gas if a storm takes aim at the Gulf Coast.
The Oregon average for regular gas began 2025 at $3.45 a gallon and is currently at $4.14. This is the highest price of the year so far. The lowest price of the year so far is just under $3.45 a gallon on January 2.
The national average began 2025 at $3.06 a gallon and is currently at $3.19. The highest price of the year so far is $3.268 on April 4. The lowest price of the year so far is $3.06 on January 5.
This week 23 Oregon counties have averages at or above $4, compared to 16 a week ago:
- Clackamas $4.25
- Clatsop $4.21
- Columbia $4.23
- Coos $4.06
- Crook $4.11
- Curry $4.36
- Douglas $4.02
- Grant $4.29
- Harney $4.29
- Hood River $4.15
- Jackson$4.21
- Jefferson $4.04
- Josephine $4.32
- Klamath $4.12
- Lake $4.19
- Lane $4.02
- Multnomah $4.26
- Sherman $4.12
- Tillamook $4.38
- Wallowa $4.16
- Wasco $4.24
- Washington $4.28
- Yamhill $4.14
Demand for gasoline in the U.S. decreased from 9.2 million b/d to 9.1 for the week ending August 29, according to the U.S. Energy Information Administration (EIA). This compares to 8.9 million b/d a year ago. Total domestic gasoline supply decreased from 222.3 million barrels to 218.5. Gasoline production decreased last week, averaging 9.9 million barrels per day compared to 10 million barrels per day the previous week.
Gas prices usually drop in the fall, due to the switch from summer-blend to winter-blend fuel, which costs less to produce. The switch starts in September. Many areas, including Oregon, can sell winter-blend fuel starting September 15. However, Northern and Southern California require summer-blend fuel through October 31. Prices usually decline to their lowest levels of the year in late fall and early winter before increasing again in the late winter and early spring.
Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel, which is more expensive to produce and less likely to evaporate in warmer temperatures. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to switch to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend until June 1. Switch-over dates are earlier in California with some areas in the state requiring summer-blend fuel by April 1. Some refineries will begin maintenance and the switchover in February.
The U.S. price of crude oil (West Texas Intermediate) had been mostly in the low-$60s to mid-$70s since last September. Crude prices spiked to the mid-$70s in mid-June in response to the strikes between Israel and Iran, and then the U.S. strike on Iran’s nuclear facilities, but then prices fell back into the $60s on the belief that the conflict would not have a major impact on global oil supplies. Crude prices fell in early April as markets reacted to President Trumps tariffs and the impact on U.S. and global markets. Additional downward pressure on crude prices came after the decision by OPEC+ to increase production. The lowest closing price since September was $57.13 on May 5, which was the lowest closing price since February 2021. The recent high price for crude was $80.04 per barrel on January 15, which was the highest price since last August.
Crude oil is trading around $63 today compared to $65 a week ago and $69 a year ago. In 2024, West Texas Intermediate ranged between $66 and $87 per barrel. In 2023, WTI ranged between $63 and $95 per barrel. WTI reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.
Crude prices are impacted by economic news as well as geopolitical events around the world including the current economic uncertainty, unrest in the Middle East, the war between Israel and Hamas, and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia. Crude prices have been volatile after the attack on Israel by Hamas in October 2023. While Israel and the Palestinian territory are not oil producers, concerns remain that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region. In addition, production cuts by OPEC+ in previous years tightened global crude oil supplies, which continued to impact prices. But this year, the cartel boosted production by 411,000 barrels per day in May and June, and July, 548,000 barrels per day in August, 547,000 barrels per day in September, and 137,000 barrels per day in October.
Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 52% of what we pay for in a gallon of gasoline is for the price of crude oil, 16% is refining, 15% distribution and marketing, and 17% are taxes, according to the U.S. Energy Information Administration.
Meanwhile, crude oil production in the U.S. remains near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in his country dipped from 13.44 to 13.42 million barrels per day for the week ending August 29. The record high is 13.63 million barrels per day for the week of December 6. Production has been at 13.5 million barrels per day many times since October. The U.S. has been the top producer of crude oil in the world since 2018 and has been increasing its oil production since about 2009.
Quick stats
Oregon is one of 41 states with higher prices now than a week ago. Oregon (+16 cents) has the biggest week-over-week jump in the nation. Ohio (-16 cents) has the largest week-over-week decline in the nation.
California ($4.63) has the most expensive gas in the nation for the sixth week in a row. Washington ($4.50) is second, Hawaii ($4.48) is third, and Oregon ($4.14) is fourth. These are the four states with averages at or above $4 a gallon. This week 29 states and the District of Columbia have averages in the $3-range. There are 17 states with an average in the $2 range this week.
The cheapest gas in the nation is in Mississippi ($2.71) and Texas ($2.76) and. No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold. At the time, the COVID-19 pandemic drove significant declines in crude oil and gasoline demand in the U.S. and around the world.
The difference between the most expensive and least expensive states is $1.92 this week, compared to $1.90 a week ago.
Oregon is one of 39 states with higher prices now than a month ago. The national average is five cents more and the Oregon average is 14 cents more than a month ago. Arizona (+36 cents). has the largest month-over-month increase in the nation. Michigan (-10 cents) has the largest month-over-month drop.
Oregon is one of eight states with higher prices now than a year ago. The national average is eight cents less, while the Oregon average is 38 cents more. Oregon has the largest year-over-year increase in the nation. The District of Columbia (-29 cents) has the largest yearly drop.
West Coast
The West Coast region continues to have the most expensive pump prices in the nation with all seven states in the top 10. It’s typical for the West Coast to have six or seven states in the top 10 as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced. In addition, this region is located relatively far from parts of the country where oil drilling, production and refining occurs, so transportation costs are higher. And environmental programs in this region add to the cost of production, storage and distribution.
Diesel
For the week, the national average adds one cent to $3.70 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average rises four cents to $4.49. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.65 and the Oregon average was $3.94.
Source: AAA