Gas Prices Plunging

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Gas Prices
Holiday travelers are paying less at the pump than they have since 2008, according to AAA.

[quote style=”2″]Oregon Prices Fell Fastest in Nation in Past Week[/quote]

Retail gas prices are down in 40 states and Washington D.C. this week, with Oregon drivers enjoying the largest weekly drop – 15 cents – in the nation, and the largest monthly drop of 48 cents.

The Oregon average for regular unleaded is $3.21 which is the lowest price since Feb. 1, 2011. The national average for regular unleaded falls another six cents this week to $3.03 a gallon which is the lowest price since late December 2010.”

“Washington has the second-largest drop of the week at 13 cents, and the second-largest monthly drop of 47 cents,” said AAA Oregon/Idaho Public Affairs Director Marie Dodds. “Gas prices normally go down this time of year, but this year’s drop has been more extreme because of the sharply declining price of crude oil.”

Drivers in every state and Washington, D.C. continue to enjoy month-over-month savings at the pump. Oregon has the largest drop in the last month with the state average down a whopping 48 cents in this timeframe. Washington has the second-largest monthly decline at 47 cents. In all, 35 states are enjoying month-over-month declines of a quarter or more.

Prices are also down in every state and Washington, D.C. compared to a year ago. Year-over-year, the average price at the pump is down by a dime or more in 46 states, including Oregon and Washington, as well as Washington, D.C.

This week Oregon and Washington drop out of the top 10 most expensive states for gasoline for the first time since early April. Oregon falls to 14th, down from eighth last week; Washington is 12th most expensive down from ninth a week ago. Nineteen states have an average gas price below $3 per gallon with drivers in South Carolina paying the least at $2.78 per gallon. Hawaii remains the nation’s most expensive market for retail gasoline and is the only state with an average above $4 per gallon.

The cost of crude oil accounts for approximately two-thirds of the price consumers pay for gasoline, which means gas prices should continue to fall as long as crude oil prices decline. AAA says the national average will likely drop below the $3 mark in the coming days. The Oregon average could fall another dime or more by the end of the year.

“Many Oregon gas stations are already selling regular unleaded for less than $3 a gallon, so consumers should shop around for the best prices in their area,” said Dodds. AAA has an app that lets you find the cheapest prices for all grades of gasoline in any geographic location. The free app can be downloaded at AAA.com/mobile.

The national and Oregon averages are well below their 2014 highs. The national average peaked at $3.70 on April 28, while the Oregon average reached its 2014 high of $3.98 on July 3.

Diesel prices are also moving down. The national average dips two cents to $3.61 a gallon. Oregon’s average falls six cents to $3.69. Diesel is at or above $4 a gallon in one state, down from two last week. Hawaii is most expensive at $4.86, followed by Alaska at $3.98, New York at $3.91, Connecticut at $3.87 and California at $3.85 (down a nickel). Idaho is sixth for the second consecutive week at $3.81 (down two cents). Washington is ninth down from seventh last week at $3.77 (down a nickel). Oregon is 20th down from 13th last week. A year ago, the national average for diesel was $3.86 and Oregon’s was $3.96.