The national average for regular gas is stable compared to last week and the Oregon average continues to fall – in fact, Oregon has the second-largest week-over-week decline for a state in the nation. Both averages are at their lowest prices in nearly five years. The national average is at its cheapest price since March 2021 and the Oregon average is at its lowest price since May 2021. However, crude oil prices have climbed above $60 per barrel this week, which could translate into higher pump prices. For the week, the national average for regular remains at $2.82 a gallon. The Oregon average falls five cents to $3.34 a gallon. Oregon has the second-largest decline in the nation, behind the District of Columbia.
“December and January are often when pump prices are at their lowest prices of the year, due to the seasonal factors of lackluster demand for gas as well as cheaper winter-blend fuel,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “However, with crude oil rising above $60 today for the first time since early December, that may put some upward pressure on pump prices.”
The Oregon average for regular gas began 2026 at $3.42 a gallon, which is the highest price of the year so far. The lowest price of the year so far is today’s price of $3.34.
The national average began 2026 at $2.83 a gallon, which is the highest price of the year so far. The lowest price of the year so far is $2.795 on January 11.
The average price for the national average for regular gas in 2025 was $3.11 per gallon. The average price of the Oregon average for the year was $3.87.
Demand for gasoline in the U.S. gasoline decreased from 8.56 million b/d to 8.17 million b/d for the week ending January 2. This compares to 8.48 million b/d a year ago. Total domestic supply of gasoline increased from 234.3 million barrels to 242 million. Gasoline production decreased last week, averaging 9.0 million barrels per day compared to 9.5 million barrels the previous week.
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. 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.
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.
The U.S. price of crude oil (West Texas Intermediate) has mostly been in the upper $50s to mid-$70s since September 2024.
WTI is trading at $61 today, compared to $57 a week ago and $79 a year ago. In 2025, West Texas Intermediate ranged between $80.04 (January 15) and $57.46 (October 16) per barrel. In 2024, WTI 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, the current situation in Venezuela, protests in Iran, unrest in the Middle East, the conflict 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 were volatile after the attack on Israel by Hamas in October 2023. While Israel and the Palestinian territory are not oil producers, there were concerns that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region. Crude oil prices declined after October’s fragile peace agreement between Israel and Hamas. In addition, production cuts by OPEC+ in previous years tightened global crude oil supplies, which continued to impact prices. But in 2025, the cartel boosted production which put downward pressure on crude oil prices. For 2026, OPEC+ says it’s not planning any production hikes in the first quarter of the year due to lower demand.
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 49% of what we pay for in a gallon of gasoline is for the price of crude oil, 14% is refining, 21% distribution and marketing, and 17% are taxes, according to the U.S. Energy Information Administration.
Meanwhile, crude oil production in the U.S. remains at or near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in his country remains is at 13.81 million barrels per day for the week ending January 2. Production has been at 13.5 million barrels per day many times since October 2024. 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 33 states and the District of Columbia with lower prices now than a week ago. The District of Columbia (-5 cents) and Oregon (-5 cents) have the largest week-over-week decreases in the nation. Iowa (+15 cents) has the biggest week-over-week increase in the country. The average in Hawaii is flat.
Hawaii ($4.42) has the most expensive gas in the nation for the fifth week in a row. California ($4.21) is second. These are the only states with averages at or above $4 a gallon. This week six states and the District of Columbia have averages in the $3-range. There are 42 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.23) and Arkansas ($2.39) 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 $2.19 this week, same as a week ago.
Oregon is one of 44 states and the District of Columbia with lower prices now than a month ago. The national average is 10 cents less and the Oregon average is 29 cents less than a month ago. Oregon has the largest month-over-month decline in the nation. Idaho (-24 cents) has the second-biggest month-over-month drop in the nation. Maryland (+8 cents) has the largest month-over-month increase.
Oregon is one of 49 states and the District of Columbia with lower prices now than a year ago. The national average is 25 cents less, while the Oregon average is 12 cents less. Utah (-40 cents) has the largest year-over-year drop in the nation. Alaska (+19 cents) is the only state with a year-over-year increase.
