Retail gas prices are at their lowest level for this date since 2004 and pump prices continue to fall.
For the week, the national average for regular unleaded loses four cents to $2.28 while Oregon’s average tumbles 11 cents to $2.55. This is the fourth-largest weekly drop in the nation. Both averages are at their lowest prices since February.
Gas prices in Hermiston are currently between $2.57 and $2.59 a gallon.
“Drivers are saving more than a dollar a gallon compared to one year ago, largely due to the relatively low price of crude oil and abundant petroleum supplies,” says AAA Oregon/Idaho Public Affairs Director Marie Dodds.
In addition to the seasonal switchover to less expensive winter-blend gasoline, the fall months are also a time when refineries go offline to conduct seasonal maintenance. This is intentionally scheduled during the months when demand for gasoline and heating oil is relatively low, and it is not uncommon for pump prices to decline during this time of year due to decreased driving demand and the cost savings associated with winter-blend gasoline.
This past summer was characterized by relatively high driving demand and refineries operated at higher capacities for longer periods of time. As a result, many are expecting the fall maintenance season to be heavier-than-usual. Barring any unexpected spikes in the price of crude or extended refinery outages, AAA says retail averages are not expected to climb this fall due to the market’s current oversupply.
The most expensive markets for retail gasoline remain west of the Rockies, with drivers in Alaska continuing to pay the highest averages at the pump. Oregon is 10th most expensive, down from ninth last week. On the other end of the spectrum, a total of five states are posting averages below $2 per gallon: South Carolina ($1.91), Mississippi ($1.93), Alabama ($1.95), Tennessee ($1.99) and Louisiana ($1.99).
