Oregon Gas Prices Are Rising Less Than National Average

Crude oil prices have skyrocketed following the strikes on Iran by the U.S. and Israel, and the stalling of tanker traffic through the Strait of Hormuz. Plus, the normal seasonal factors are also putting upward pressure on pump prices. While drivers in all 50 states are finding higher prices at the pumps, Oregon and Washington have some of the smaller increases in the country. For the week, the national average for regular soars 43 cents to $3.54 a gallon. The Oregon average jumps 31 cents to $4.26 a gallon. This is the 42nd-largest week-over-week increase for a state in the country.

These weekly jumps are not as high as in March 2022, after Russia invaded Ukraine. Then the national average shot up 60 cents and the Oregon average jumped 58 cents between March 2 and 9 of that year.

The national average is currently at its highest price since July 2024. The Oregon average is at its highest price since September 2025.

“When crude oil prices shoot up, pump prices follow suit because crude oil is the basic ingredient in gasoline and diesel. It’s impossible to predict how high prices might go, but expect elevated oil and gas prices as long as the conflict in Iran continues and tankers are stalled in the Strait of Hormuz,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.

In general, every $1 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.

About 20% of the world’s oil and refined products flow through the Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran. Tankers traveling through the Strait of Hormuz carry oil from major producers in the Middle East including Saudi Arabia, Kuwait, Bahrain, UAE, Qatar, Iraq and Iran. Any disruption in the straight can impact global oil supplies. While the U.S. does not rely on Iranian oil, nations such as China and India do.

The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is today’s price of $4.26. The lowest price of the year so far is $3.33 on January 20.

The national average began 2026 at $2.83 a gallon. The highest price of the year so far is today’s price of $3.54. The lowest price of the year so far is $2.795 on January 11.

Demand for gasoline in the U.S. gasoline decreased from 8.73 million b/d to 8.29 million for the week ending February 27. This compares to 8.88 million b/d a year ago. Total domestic gasoline supply decreased from 254.8 million barrels to 253.1 million. Gasoline production increased last week, averaging 9.3 million barrels per day compared to 9.2 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) surged to near four-year highs around $95 per barrel this week, but has fallen to the $80s today as President Trump signalled that the conflict with Iran may end soon. WTI had mostly been in the upper $50s to mid-$70s since September 2024, and had mostly been in the $55 to $65 range for the past few months. Oil prices rose last month, in part driven by escalating tensions between the U.S. and Iran. Then crude oil prices shot up after the strikes on Iran by the U.S. and Israel. Any conflict with Iran can send oil prices higher, as Iran is a major oil producer and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.

WTI is trading around $82 today, compared to $75 a week ago and $66 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 conflict with Iran, economic uncertainty, the situation in Venezuela, tensions over Greenland, sanctions on Iran’s oil, 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.

In addition, moves by OPEC+ impact crude oil prices. Production cuts by the cartel 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 the first quarter of 2026, OPEC+ said it would not have production hikes in the first quarter of this year due to lower demand. However, at its meeting on March 1, OPEC+ said it would boost oil production by 206,000 barrels a day in April. This may help mitigate the impact of the Iran conflict on oil prices.

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 47% of what we pay for in a gallon of gasoline is for the price of crude oil, 16% is refining, 20% 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 is at 13.70 million barrels per day for the week ending February 27. 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

All 50 states and the District of Columbia are seeing week-over-week increases. California (+62 cents) has the largest jump in the country. Hawaii (+19 cents) has the smallest. Oregon (+31 cents) has the 42^nd-largest increase, and Washington (+31 cents) has the 44^th-largest increase. Both states saw prices jump last month after an outage of the Olympic pipeline.

California ($5.29) has the most expensive gas in the nation for the fifth week in a row and is the only state with an average at or above $5 per gallon. Washington ($4.69) is second, Hawaii ($4.59) is third, Nevada ($4.30) is fourth, and Oregon ($4.26) is fifth. These are the states with averages at or above $4 a gallon. This week 44 states and the District of Columbia have averages in the $3-range. Only one state, Kansas, has an average in the $2 range this week.

The cheapest gas in the nation is in Kansas ($2.96) and Oklahoma ($3.01). 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 $2.33 this week, compared to $2.05 a week ago.

All 50 states and the District of Columbia have higher prices now than a month ago. The national average is 62 cents more and the Oregon average is 68 cents more than a month ago. Arizona (+83 cents) has the largest month-over-month jump in the nation. Hawaii (+19 cents) has the smallest.

All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 45 cents more, while the Oregon average is 53 cents more. Ohio (+65 cents) has the largest year-over-year jump in the nation. Montana (+43 cents) has the smallest.

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.

As mentioned above, California has the most expensive gas in the country for the fifth consecutive week. Washington, Hawaii, Nevada, Oregon, Arizona, and Alaska and round out the top seven. Oregon slips to fifth most expensive after three weeks at fourth.

All seven states in the West Coast region have week-over-week increases, as do all 50 states in the nation. California (+62 cents) has the largest jump in the region and the country. Arizona (+58 cents) has the second-largest jump in the region and the country. Nevada (+57 cents) has the third-largest jump in the region and the country. Oregon (+31 cents), Alaska (+31 cents), Washington (+31 cents), and Hawaii (+19 cents) also have week-over-week increases.

The refinery utilization rate on the West Coast fell from 81.1% to 79.6% for the week ending February 27. This rate has ranged between about 72% to 93% in the last year. The latest national refinery utilization rate rose from 88.6% to 89.2%.

The refinery utilization rate measures how much crude oil refineries are processing as a percentage of their maximum capacity. A low or declining rate can put upward pressure on pump prices, while a high or rising rate can put downward pressure on pump prices.

According to EIA’s latest weekly report, total gas stocks in the region fell from 29.82 million bbl. to 28.65 million bbl. for the week ending February 27. An increase in gasoline stocks can put downward pressure on pump prices, while a decrease in gasoline stocks can put upward pressure on pump prices.

Oil market dynamics

Crude oil prices shot up to near four-year highs of $95 per barrel on Monday, but have fallen to the $80s today, after President Trump said the war in Iran may end soon and the International Energy Agency was considering a possible release of energy stockpiles.  Expect oil prices to remain volatile as anytime a major oil producer, such as Iran, is involved in a geo-political event, crude prices go up due to market concerns about global oil supplies.

Meanwhile, the EIA reports that crude oil inventories increased by 3.5 million barrels from the previous week. At 439.3 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.

At the close of Friday’s formal trading session, WTI rose $9.89 to close at $90.90. At the close of Monday’s formal trading session, WTI added $3.87 to close at $94.77. Today crude is trading around $82, compared to $75 a week ago. Crude prices are about $16 more than a year ago. ($66.03 on March 10, 2025)

Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Diesel

For the week, the national average soars 89 cents to $4.78 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average jumps 72 cents to $5.02. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.63 and the Oregon average was $3.86.

Find current fuel prices at GasPrices.AAA.com.