Gas prices in Oregon and across the country continue to fall as a record number of Americans get ready to travel for the holidays.
AAA reports this week that the national average is down to its lowest price since May 2021, while the Oregon average is at its cheapest price since February of this year. For the week, the national average for regular declines four cents to $2.91 a gallon. The Oregon average tumbles nine cents to $3.61 a gallon. This is the second week in a row that the Oregon average has decreased by nine cents.
“The falling pump prices are driven by crude oil prices below $60 per barrel and refineries cranking out plentiful supplies of gasoline. Lower gas prices should stick around as we close out 2025, if there are no geo-political events that impact crude oil prices and/or disruptions to production or distribution of fuel,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Crude prices have moved lower this month as investors weigh a global surplus, as well as the possibility of a peace agreement between Russia and Ukraine. In trading early this week, WTI fell below $55 for the first time since early 2021.
AAA projects record travel for the holidays with 122.4 million Americans – including 1.7 million Oregonians – traveling 50 miles or more for the Christmas, Hanukkah, and New Year holidays. This year’s travel volume is up 2.2% over 2024. About 89% of travelers will drive, 6.6% will fly, and 4% will go by cruise, train or bus.
The national average for regular gas is less expensive than last year, while the Oregon average is more expensive.
This year began with the Oregon average for regular gas at $3.45 a gallon, and it’s currently at $3.61. 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 $2.91. The highest price of the year so far is $3.268 on April 4; the lowest price of the year so far is today’s average of $2.91.
This week, no Oregon county has an average at or above $4, down from one a week ago.
Oregon is one of 45 states and the District of Columbia with lower prices now than a week ago. Idaho (-12 cents) has the largest week-over-week decline in the nation. Ohio (+9 cents) has the biggest week-over-week increase in the nation.
After 12 weeks, Hawaii ($4.44) bumps California ($4.36) as the state with the most expensive gas in the nation. Washington took over the top spot for a week in September when the Olympic Pipeline was out of operation. This week, Washington ($4.00) is third. These are the only states with averages at or above $4 a gallon. This week, nine states and the District of Columbia have averages in the $3 range. There are 38 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.31) and Iowa ($2.46). 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 $2.08 a week ago.
All 50 states and the District of Columbia have lower prices now than a month ago. The national average is 17 cents less and the Oregon average is also 17 cents less than a month ago. Nevada (-40 cents) has the biggest month-over-month drop in the nation.
Oregon is one of six states with higher prices now than a year ago. The national average is 12 cents less, while the Oregon average is 14 cents more. Alaska (+25 cents) has the largest year-over-year increase in the country. Oregon has the second-largest year-over-year increase. Colorado (-38 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, Hawaii knocks California out of the most expensive spot. California slips to second place after 12 weeks as the most expensive state. Washington, Oregon, Alaska and Nevada round out the top six. Arizona is eighth. Oregon is the fourth most expensive for the fourth week in a row.
Six of the seven states in the West Coast region have week-over-week decreases: Nevada (-9 cents), California (-9 cents), Oregon (-9 cents), Washington (-8 cents), Arizona (-7 cents), and Alaska (-5 cents). Hawaii (+2/10 of a cent) has a tiny increase.
For the week, the national average for diesel falls five cents to $3.64 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average loses seven cents to $4.21. The record high is $6.47 set on July 3, 2022. A year ago, the national average for diesel was $3.50 and the Oregon average was $3.77.
