Labor Day travelers will be paying the highest prices ever for gas for the holiday – both in Oregon and nationwide.
For the week, the national average for regular gasoline holds steady at $4.10 a gallon; the Oregon average jumps 12 cents to $4.89 a gallon.
The average prices for regular gas in Oregon and Washington (up 10 cents to $5.37 a gallon) are showing larger week-over-week increases than most other states due to dwindling supplies of summer-blend gas, as the switch to winter-blend fuel is underway. The U.S. Environmental Protection Agency issued an emergency waiver, moving up the transition date to Sept. 1 instead of the usual date of Sept. 15.
In addition, there are reports of possible operational issues at the Olympic Pipeline, the 400-mile pipeline that carries refined petroleum products – including gasoline, diesel and jet fuel – from the refineries in Washington state to distribution terminals in the Pacific Northwest, including Portland. When the pipeline is down, fuel has to travel into Oregon by barge, truck or train, which are less efficient and more expensive than the pipeline. BP, which operates the pipeline, has not commented.
The previous high prices for Labor Day were in 2023, when the national average was $3.81 and the Oregon average was $4.74. Those prices were up slightly from Labor Day 2022.
The national average for regular gas is at its highest price ever for this time of year. The previous high prices for early September were reached in 2022 and 2023. On Sept. 1, 2022, the national average was at $3.83 and $3.82 in 2023, compared to $4.10 today. At this point, drivers will likely pay a national average above $4 a gallon on Labor Day, which would be a record high price for the holiday, beating the old high price of $3.81 set in 2023.
The Oregon average is also at its highest price ever for this time of year. On Sept. 1, 2022, Oregon drivers were paying an average price of $4.76 and $4.75 in 2023, compared to $4.89 today.
Crude oil prices have remained above $80 per barrel since Aug. 10, driven by the ongoing war with Iran and restrictions on shipping traffic through the Strait of Hormuz. The war between Russia and Ukraine is also pressuring crude prices, as Ukrainian drone strikes have taken a significant amount of Russia’s refining capacity offline.
“Drivers can expect pump prices to remain elevated for this time of year. A little relief may come this month due to the transition to cheaper winter-blend fuel, provided no other supply disruptions occur. But large decreases are unlikely as long as the conflict in the Middle East continues,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
This year began with Oregon’s average for regular gas at $3.42 a gallon. The highest price of the year so far is $5.353 on May 20; the lowest price of the year so far is $3.33 on Jan. 20. The record high for the Oregon average is $5.548 set on June 15, 2022.
Washington’s average for regular gas began the year at $3.86 a gallon. The highest price of the year so far is $5.789 on May 20, which is the record high for Washington. The lowest price of the year so far is $3.79 on Jan. 14.
The nation’s average began 2026 at $2.83 a gallon. The highest price of the year so far is $4.564 on May 21; the lowest price of the year so far is $2.795 on Jan. 11. The record high for the national average is $5.016 set on June 14, 2022.
Oregon is one of 23 states with higher gas prices this week. New Jersey (+12 cents) has the largest week-over-week jump in the nation. Oregon (+12 cents) has the second largest, and Washington (+10 cents) has the third largest week-over-week increase. Ohio (-17 cents) has the largest week-over-week decline.
California ($5.70) has the most expensive gas in the nation for the seventh week in a row. Hawaii ($5.42) is second and Washington ($5.37) is third. These are the three states with averages at or above $5 per gallon. This week, there are 22 states and the District of Columbia with averages at or above $4 a gallon, and 25 states have averages in the $3 range. No state has an average in the $2 range this week.
The cheapest gas in the nation is in Indiana ($3.39) and Texas ($3.64). 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 $2.31 this week, compared to $2.13 a week ago.
Oregon is one of 31 states with higher prices now than a month ago. The national average is the same and the Oregon average is 25 cents more than a month ago. Idaho (+29 cents) has the largest month-over-month increase. Ohio (-26 cents) has the biggest month-over-month decline.
All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 90 cents more, while the Oregon average is 91 cents more than one year ago. Wyoming (+$1.25) has the largest year-over-year jump in the nation. Indiana (+13 cents) has the smallest. 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 the most expensive gas in the country for the seventh consecutive week. Hawaii, Washington, Alaska, Oregon, and Nevada round out the top six; Arizona is eighth. Oregon moves up a spot to fifth most expensive after seven weeks at sixth.
Six of the seven states in the West Coast region have week-over-week increases: Oregon (+12 cents), Washington (+10 cents), California (+8 cents), Alaska (+6 cents), Nevada (+4 cents), and Hawaii (+1 cent). The average in Arizona is flat.
Diesel prices are higher in 25 states and the District of Columbia this week. Oregon (+21 cents) has the largest week-over-week jump. Michigan (-9 cents) has the biggest week-over-week decline. For the week, the national average adds one 1 cent to $5.63 a gallon and is now only about 19 cents lower than the all-time record high of $5.816 set on June 19, 2022. The Oregon average soars 21 cents to $5.88. The record high is $6.47 set on July 3, 2022. A year ago, the national average for diesel was $3.69 and the Oregon average was $4.46.
