Demand for Gas Climbs as Travelers Take Final Summer Getaways

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Retail gas prices have been inching down but some areas could see temporary spikes following Hurricane Ida and ahead of the Labor Day holiday weekend.

(Graphic courtesy of AAA Oregon/Idaho)

The storm has taken about 13 percent of U.S. refining capacity offline. Impacts should be minimal here on the West Coast. For the week, the national average for regular ticks up a penny to $3.16 a gallon. The Oregon average slips a penny to $3.78.

“Drivers will pay the most expensive prices for gas over the Labor Day holiday in seven years. Most Labor Day travelers are going by car, which has been the most popular way to travel during the coronavirus pandemic,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.

With COVID-19 cases surging in Oregon and most other states, and schools already back in session or starting soon, travel is not expected to be as robust this Labor Day as before the pandemic. For those who do choose to take a trip on the last holiday weekend of the summer, many are visiting destinations that are fairly close — about a day’s drive — from home.

Here are the top 10 destinations for Labor Day based on bookings and searches at AAA.com/travel over the past 30 days:

  1. Oregon coast: Lincoln City, Seaside, Newport, Florence, Cannon Beach
  2. Bend
  3. Las Vegas
  4. Washington: Seattle, Walla Walla
  5. Northern/Central California: Redding, Eureka, Sacramento, Monterey, San Luis Obispo
  6. Yellowstone National Park and surrounding areas including Wyoming and Montana
  7. Portland
  8. Ashland, Ore
  9. Utah: Ogden, Moab
  10. Anaheim, Disneyland

Visit AAA.com/covidmap for an interactive map with the latest travel restrictions and policies for North America. Find AAA’s latest COVID-19 information for travelers here.

Oregon is one of 23 states with lower prices now than a week ago. All states are showing small changes of a nickel or less this week. North Dakota (-3 cents) has the largest weekly drop in the country. Indiana (+5 cents) has the largest week-over-week gain. Averages are flat in Kansas and Montana.

California ($4.40), Hawaii ($4.07), and Nevada ($4.03) continue to have the most expensive gas prices in the country and are the only states in the nation with averages above $4 a gallon, and 31 states and the District of Columbia are at or above $3, same as a week ago.

The cheapest gas in the nation is in Texas ($2.78) and Mississippi ($2.78).  For the 34th week in a row, no state has an average below $2 a gallon.

Oregon is one of 22 states with higher prices now than a month ago. The national average is one cent less and the Oregon average is five cents more than a month ago. This is the fifth-largest month-over-month increase in the nation.