AAA reports this week that the national average for gasoline has surpassed $4.00 a gallon, and the Oregon average has reached $5.00 a gallon for the first time in four years.
Gas prices continue to skyrocket due to the conflict in Iran, the ongoing closure of the Strait of Hormuz, and damage to energy infrastructure in the Middle East. For the week, the national average for regular climbs 12 cents to $4.14 a gallon; the Oregon average gains seven cents to $5.00 a gallon.
The national average was $2.98 and Oregon’s average was $3.92 on Feb. 28, the day the U.S. and Israel launched airstrikes against Iran.
The national average rose above $4.00 on March 31 for the first time since March 2022. That year, the national average stayed at $4.00 or higher from March 6 to Aug. 10 and rose above $5.00 for a week in June. These high pump prices were driven by the invasion of Ukraine by Russia.
The Oregon average hit $5.00 on Tuesday, April 7 for the first time since October 2022. That year, the Oregon average was at $5.00 or higher from May 17 to Aug. 4 following the Russian invasion of Ukraine, and again from Sept. 26 to Oct. 27 after several California refineries went offline for planned and unplanned maintenance, putting a major crimp in West Coast supplies.
Crude oil prices have been surging, surpassing $100.00 per barrel as the conflict in the Middle East continues; prices have increased about 67% since the start of the conflict. West Texas Intermediate, the U.S. benchmark for crude, closed at $67.02 on Feb. 27 and settled around $112.00 per barrel on Monday.
“With crude oil prices above $100 per barrel, there’s no relief in sight for drivers. In addition to the conflict in the Middle East and the resulting global oil crisis, the normal seasonal factors are also putting upward pressure on pump prices, including the annual switch to summer-blend gas,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
In general, every $1.00 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.
About 20% of the world’s oil and refined products flow through the Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran. Tankers traveling through the Strait of Hormuz carry oil from major producers in the Middle East including Saudi Arabia, Kuwait, Bahrain, UAE, Qatar, Iraq and Iran. Any disruption in the strait can impact global oil supplies. While the U.S. does not rely on Iranian oil, nations such as China, India and Pakistan do.
The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is Tuesday’s price of $5.00. The lowest price of the year so far is $3.33 on Jan. 20.
The national average began 2026 at $2.83 a gallon. The highest price of the year so far is Tuesday’s price of $4.14. The lowest price of the year so far is $2.795 on Jan. 11.
Oregon is one of 49 states and the District of Columbia with higher prices this week. Pennsylvania (+21 cents) has the largest week-over-week jump in the country; Wyoming (+1 cent) has the smallest. Colorado (-7 cents) is the only state with a week-over-week decline.
California ($5.93) has the most expensive gas in the nation for the ninth week in a row. Hawaii ($5.60) is second, Washington ($5.39) is third, Nevada ($5.01) is fourth, and Oregon ($5.00) is fifth. These are the states with averages at or above $5.00 per gallon. This week, there are 18 states and the District of Columbia with averages at or above $4.00 a gallon. This week, 27 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 Oklahoma ($3.35) and Kansas ($3.39). No state has had an average below $2.00 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 $2.58 this week, compared to $2.62 a week ago.
All 50 states and the District of Columbia have higher prices now than a month ago. The national average is 73 cents more and the Oregon average is 84 cents more than a month ago. Hawaii (+$1.13) has the largest month-over-month jump in the nation. Minnesota (+35 cents) has the smallest.
All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 88 cents more, while the Oregon average is 99 cents more. Arizona (+$1.34) has the largest year-over-year jump in the nation. North Dakota (+38 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 ninth consecutive week. Hawaii, Washington, Nevada, Oregon, Arizona, and Alaska round out the top seven. Oregon slips to fifth most expensive after two weeks at fourth.
All seven states in the West Coast region have week-over-week increases: Hawaii (+15 cents), Nevada (+8 cents), Oregon (+7 cents), Arizona (+7 cents), Washington (+5 cents), California (+4 cents), and Alaska (+3 cents).
Diesel prices are increasing faster than gasoline prices due to low global supplies that have been exacerbated by the conflict with Iran. Both the national and Oregon average prices are approaching their record highs. For the week, the national average rises 19 cents to $5.65 a gallon. This is the highest price for the national average since July 2022. The record high is $5.816 set on June 19, 2022.
The Oregon average for diesel climbs 21 cents to $6.28. This is the highest price for the Oregon average since July 2022. The record high is $6.47 set on July 3, 2022. A year ago, the national average for diesel was $3.62 and the Oregon average was $3.93.
