AAA Oregon/Idaho reported early this week that Oregon and Washington saw gas prices begin to retreat as operations of the Olympic Pipeline resumed.
This major pipeline was down starting about Sept. 2, creating very tight supplies in the region. Wholesale prices for gasoline shot up and consumers were hit with double-digit increases at the pumps. The pipeline’s return to operations and the switch to winter-blend fuel are now putting downward pressure on gas prices. For the week, the national average for regular loses two cents to $3.17 a gallon; the Oregon average falls six cents to $4.23 a gallon.
“The outage of the Olympic Pipeline as well as refinery maintenance in the West Coast region created very tight supplies here and drivers sure felt pain at the pumps earlier this month. Prices should keep falling in the coming weeks now that the pipeline is back in operation,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “Also, gas stations in Oregon can now sell winter-blend fuel, which costs less to produce than summer-blend gas, so that will also help to lower pump prices.”
The 400-mile Olympic Pipeline carries refined petroleum products from the refineries in Washington to distribution terminals in the Pacific Northwest, including Portland. During this month’s outage, some fuel was sent by barge, which takes more time and is more expensive. Gas prices in Oregon and Washington shot up as a result. The Oregon average went from $3.98 on Sept. 2 to its year-to-date high of just under $4.30 on Sept. 13-14. The Washington average went from $4.39 on Sept. 2 to its year-to-date high of $4.66 on Sept. 14 and 16. Last week, Washington had the most expensive gas prices in the nation.
While this year’s Atlantic hurricane season has been quieter than some, a major storm remains the wildcard. Any storm that targets the Gulf Coast can have an impact on the production and distribution of oil and gas.
In January 2025, the Oregon average for regular gas was $3.45 a gallon and is currently at $4.23. The highest price of the year so far is $4.297 on Sept. 13-14; the lowest price of the year so far is just under $3.45 a gallon on Jan. 2.
The national average began 2025 at $3.06 a gallon and is currently at $3.17. 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 Jan. 5.
Oregon is one of 37 states and the District of Columbia with lower prices now than a week ago. New Mexico (-11 cents) has the largest week-over-week decline in the nation. Ohio (+10 cents) and Maryland (+10 cents) have the biggest week-over-week jumps in the nation. The average in Hawaii is flat.
After one week, California ($4.66) bumps Washington ($4.60) as the state with the most expensive gas in the nation. Hawaii ($4.47) is third and Oregon ($4.23) is fourth. These are the four states with averages at or above $4 a gallon. This week, 24 states and the District of Columbia have averages in the $3 range. There are 22 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.68) and Mississippi ($2.70). No state has had an average below $2 a gallon since Jan. 7, 2021, when Mississippi and Texas were below that threshold.
The difference between the most expensive and least expensive states is $1.97 this week, compared to $1.96 a week ago.
Oregon is one of 34 states with higher prices now than a month ago. The national average is two cents more and the Oregon average is 26 cents more than a month ago. This is the largest month-over-month jump for a state in the nation. Arizona (+26 cents) has the second largest month-over-month increase in the nation, while Washington (+20 cents) has the third largest monthly increase. Wisconsin (-19 cents) has the largest month-over-month drop.
Oregon is one of 12 states with higher prices now than a year ago. The national average is four cents less, while the Oregon average is 52 cents more. Oregon has the largest year-over-year increase in the nation. Washington (+49 cents) has the second-largest increase. Colorado (-25 cents) has the largest yearly drop.
As mentioned, California bumps Washington as the state with the most expensive gas in the nation. Washington held the top spot for one week due to the outage of the Olympic Pipeline. Hawaii, Oregon, Nevada, Alaska, and Arizona round out the top seven. Oregon is fourth most expensive for the 18th week in a row.
Four of the seven West Coast states are seeing week-over-week decreases: Washington (-6 cents), Oregon (-6 cents), Nevada (-1 cent), and Alaska (-1 cent). Two states have tiny increases: Arizona (+4/10 of a cent) and California (+3/10 of a cent). The average in Hawaii is the same as a week ago.
For the week, the national average for diesel ticks down one cent to $3.69 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average also edges down one cent to $4.49. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.58 and the Oregon average was $3.90.
