Crude oil prices are at their lowest levels in 12 years and continue to put downward pressure on retail gas prices.
For the past week, the national average for regular unleaded dipped three cents to $1.96 a gallon. The Oregon average tumbled seven cents to $2.27. In fact, Oregon is the only state where the average is down by more than a nickel per gallon week-over-week, said AAA Oregon/Idaho Public Affairs Director Marie Dodds.
“The national average is at its lowest price since March 2009,” she said. “The Oregon average is at its lowest price since mid-December 2015. West Coast prices remain elevated due to lingering refinery issues; however, AAA expects gas prices to remain relatively low because there’s a glut of oil around the world and more than enough gasoline to meet demand.”
California continues to weather ongoing refinery issues and remains the most expensive state for gasoline. The Golden State ranks third in the nation in refining capacity and refineries in the state typically operate at higher-than-average levels to meet demand. Disruptions in production generally lead to noticeable spikes in the price at the pump, which are often exacerbated due to the market’s relative isolation and specific fuel requirements. Consumers on the West Coast will likely experience price swings in the near term due to both planned and unplanned maintenance, and this could increase the national average price of gas even as prices drop in other parts of the country.
As a result of these supply challenges, California ($2.85) remains the most expensive state for gas ahead of second-place Hawaii ($2.68). Regional neighbors Alaska ($2.50), Nevada ($2.48), and Washington ($2.41) round out the nation’s top five most expensive markets for retail gasoline. Oregon ($2.27) is sixth most expensive for the fifth week in a row. Hermiston prices, however, are about 16 to 18 cents cheaper than the state average. On the other end of the spectrum, Missouri ($1.64) and Oklahoma ($1.69) are the nation’s least expensive markets. Drivers in 36 states are paying an average of less than $2 per gallon, and retail averages in 10 states are at or below $1.75 per gallon.
