The national average for regular gas dipped below $3 a gallon this week for the first time in more than four years, according to AAA’s most recent fuel price news release.
Gas prices are falling in 48 states, including Oregon this week, driven by low crude oil prices and seasonal sluggish demand for gas. Here in the Pacific Northwest, the complete reopening of the Olympic Pipeline is also putting downward pressure on gas prices. For the week, the national average for regular slides six cents to $2.998 a gallon. The Oregon average falls three cents to $3.79 a gallon.
“The national average for regular gas was last below $3 a gallon on May 11, 2021, when it was just below $2.99 a gallon. Prior to that, the last time the national average was below $3 per gallon was on Nov. 1, 2014,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “Gas prices should continue to move lower this month, which is a nice holiday gift for drivers.”
The Olympic Pipeline, the Pacific Northwest’s primary fuel artery, is fully open. The pipeline system consists of a 16-inch diameter pipeline and a 20-inch diameter pipeline, and both are again carrying fuel. The system was shut down last month after a leak was detected near Everett, Wash. on Nov. 11. Response crews did 24-hour excavation operations in the area and identified the source of the leak on the 20-inch pipeline. BP said testing on the 16-inch pipeline found no indications of a leak and it was restarted on Nov. 25. The 20-inch line was restarted on Nov. 29, according to a statement from BP, the pipeline’s operator.
The 400-mile pipeline system carries gasoline, diesel and jet fuel from refineries in Washington state to Portland. It also provides jet fuel to Sea-Tac International Airport.
The impact from this outage of the Olympic Pipeline was minimal, with the Oregon average for regular gas gaining just four cents after the outage occurred. An outage on the pipeline in September was one factor that caused gas prices in Oregon and Washington to spike. The outage occurred at the same time as planned and unplanned maintenance at refineries in Washington and California and the switch from summer-blend to winter-blend fuel. These factors all put a crimp in supplies and sent gas prices significantly higher, with the Oregon average jumping 32 cents.
The Oregon average for regular gas began 2025 at $3.45 a gallon and is currently at $3.79. 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 $2.998. The highest price of the year so far is $3.268 on April 4. The lowest price of the year so far is $3.036 on Oct. 19-20.
This week, just one Oregon county has an average at or above $4 a gallon: Wallowa County at $4.11.
Oregon is one of 48 states and the District of Columbia with lower prices now than a week ago. Michigan (-14 cents) has the largest week-over-week decline in the nation. North Carolina (+1 cent) has the biggest week-over-week increase in the nation.
California is the state with the most expensive gas in the nation for the 11th week in a row at $4.54 a gallon. Washington took over the top spot for a week in September when the Olympic Pipeline was out of operation. This week, Hawaii ($4.45) is second and Washington ($4.16) is third. These are the only states with averages at or above $4 a gallon. This week, 16 states and the District of Columbia have averages in the $3 range. There are 31 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.40) and Texas ($2.55). 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 $2.14 this week, compared to $2.09 a week ago.
Oregon is one of 35 states with lower prices now than a month ago. The national average is four cents less and the Oregon average is 10 cents less than a month ago. Colorado (-26 cents) has the biggest month-over-month drop in the nation. Rhode Island (+8 cents) has the largest month-over-month increase.
Oregon is one of 14 states with higher prices now than a year ago. The national average is five cents less, while the Oregon average is 24 cents more. Oregon has the largest year-over-year increase in the nation. Colorado (-30 cents) has the largest yearly drop.
The West Coast region continues to have the most expensive pump prices in the nation, with all seven states in the top 10.
As mentioned, California has nation’s most expensive gas for the 11th week in a row. Hawaii, Washington, Oregon, Nevada, Alaska and Arizona round out the top seven. Oregon is fourth most expensive for the second week in a row.
Six of the seven West Coast states have week-over-week decreases: Nevada (-6 cents), Arizona (-5 cents), California (-5 cents), Alaska (-3 cents), Oregon (-3 cents), and Washington (-3 cents). Hawaii (+1 cent) is the only state in the region with a week-over-week increase.
For the week, the national average for diesel loses five cents to $3.74 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average declines three cents to $4.31. The record high is $6.47 set on July 3, 2022. A year ago, the national average for diesel was $3.54 and the Oregon average was $3.83.
Crude oil was trading around $59 early this week, compared to $58 a week ago and $68 a year ago. Crude oil prices have remained below $60 per barrel since Nov. 19, but prices were up slightly to start the week as OPEC+ said it would pause its production increases for first quarter 2026. Still, crude oil prices face downward pressure due to plentiful global supplies, which are likely to exceed the growth in demand.
