The national average for a gallon of regular gas could soon reach the $3 mark for the first time since May 2021, according to AAA Oregon/Idaho’s recent fuel price report.
The Oregon average is close to dipping below $4 per gallon. Prices here surged above $4 in early September when the Olympic Pipeline was out of service. Major factors behind falling gas prices include crude oil prices briefly below $60 per barrel, lower demand for gas in the U.S., cheaper winter-blend fuel, and continued production increases in crude oil by OPEC+. For the week, the national average for regular slips three cents to $3.05 a gallon. The Oregon average loses seven cents to $4.01 a gallon.
“Gas prices are cooling off like fall weather. Declines have been slow and steady, and drivers should continue to get relief at the pumps in the coming weeks,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “This week, a gas station in Evans, Colo. sold gas at $1.999 per gallon. This is the first time in four years for a retail price below $2 a gallon for regular gas. Other stations in parts of the U.S. may follow suit.”
The Oregon average for regular gas began 2025 at $3.45 a gallon and is currently at $4.01. 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 $3.05. 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.
The U.S. price of crude oil (West Texas Intermediate) plunged below $60 per barrel on Oct. 10. It’s the first time WTI fell below $60 since May 7, 2025. Easing tensions in the Middle East between Israel and Hamas, increased oil production by OPEC+, and concerns of a cooling global economic climate have all contributed to the decline.
Oregon is one of 46 states with lower prices now than a week ago. New Mexico (-11 cents) has the largest week-over-week decline in the nation. Ohio (+28 cents) has the biggest week-over-week increase in the nation due to a fire last week at the BP refinery in Whiting, Ind., which is the largest in the Midwest.
California ($4.62) is the state with the most expensive gas in the nation for the fifth week in a row. Washington took over the top spot for a week in September when the Olympic Pipeline was out of operation. This week, Hawaii ($4.48) is second, Washington ($4.40) is third, and Oregon ($4.01) is fourth. These are the four states with averages at or above $4 a gallon. This week 14 states and the District of Columbia have averages in the $3 range. There are 32 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.56) and Texas ($2.60). No state has had an average below $2 a gallon since Jan. 7, 2021, when Mississippi and Texas were below that threshold. As mentioned, one gas station in Evans, Colo. sold gas this week at $1.999 per gallon.
The difference between the most expensive and least expensive states is $2.07 this week, compared to $2.09 a week ago.
Oregon is one of 49 states and the District of Columbia with lower prices now than a month ago. The national average is 13 cents less and the Oregon average is 23 cents less than a month ago. This is the seventh-largest month-over-month decline for a state in the nation. Iowa (-28 cents) has the largest month-over-month drop in the nation. The average in Hawaii is flat.
Oregon is one of six states with higher prices now than a year ago. The national average is 13 cents less, while the Oregon average is 35 cents more. Oregon has the largest year-over-year increase in the nation. Washington (+33 cents) has the second-largest increase. Michigan (-34 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 above, California is the state with the most expensive gas in the nation for the fifth week in a row. Hawaii, Washington, Oregon, Alaska and Nevada round out the top six; Arizona is eighth. Oregon has the fourth most expensive gas for the 22nd week in a row.
All seven West Coast states have week-over-week decreases: Arizona (-8 cents), Oregon (-7 cents), Washington (-7 cents), Nevada (-4 cents), California (-3 cents), Alaska (-2 cents) and Hawaii (-3/10 of a cent).
For the week, the national average for diesel falls four cents to $3.62 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average loses five cents to $4.40. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.59 and the Oregon average was $3.93.
