[quote style=”2″]Prices Still 89 Cents Lower than a Year Ago[/quote]
For the week, the national average for regular unleaded jumps a nickel to $1.81 a gallon. The Oregon average adds six cents to just under $2 per gallon.
Despite the increase, the Oregon average is 89 cents lower than a year ago, which is the third-largest yearly drop in the nation, says AAA Oregon/Idaho Public Affairs Director Marie Dodds.
“AAA expects gas prices to increase as the spring refinery maintenance season causes a reduction in supplies, and also as a result of higher crude oil prices,”However, pump prices are not expected to escalate as much as in recent years.”
Refineries typically undergo scheduled maintenance during the first two quarters of the year in advance of the busy summer driving season. This year’s spring turnaround has been characterized by lower-than-expected prices, which has prompted a number of refineries to adjust their maintenance schedules and/or cut production in response to abundant supplies. Refineries are also reportedly beginning to reduce production in preparation for the seasonal switchover to summer-blend gasoline. These factors may cause prices to swing at the regional level at a faster rate than normal as supply and demand seek balance. The relatively low price of crude oil and abundant supplies should keep a ceiling on how high gas prices move in the coming months, and barring any unexpected disruptions in supply, drivers should continue to benefit from cheaper gas prices than in recent years.
Pump prices are above $2 per gallon in just five states, all located on the West Coast. Hawaii has the nation’s highest average for gasoline, followed by regional neighbors California, Alaska, Washington and Nevada. Oregon is sixth up from seventh last week at just under $2.00. Gas prices in Hermiston remain around $1.89 per gallon.
