Gas prices are continuing their gradual seasonal decline. Low crude oil prices, lackluster demand for gas, and winter-blend fuel are the major drivers of lower prices.
For the week, the national average for regular loses three cents to $3.10 a gallon. The Oregon average also falls three cents to $3.61 a gallon.
The Oregon average is at its lowest price since February of this year while the national average is at its lowest price since January. This week, only one Oregon county still has an average above $4 a gallon: Wallowa ($4.14), same as a week ago.
“Gas prices are only a few cents away from the lowest prices we’ve seen so far this year. AAA expects pump prices to keep falling, barring escalating tensions in the Middle East or some disruption in supplies,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
The Oregon average began 2024 at $3.79 a gallon compared to $3.61 today. Its lowest price so far this year is $3.58 on February 14 and the highest is nearly $4.51 on May 1. The national average started the year at $3.11 and is at $3.10 today. Its lowest price so far this year is just under $3.07 on January 15 and the highest is just under $3.68 on April 19.
Gas prices typically drop in the fall, due to the switch from summer-blend to winter-blend fuel, which costs less to produce. The switch starts in September. Many areas, including Oregon, can sell winter-blend fuel starting September 15. However, Northern and Southern California require summer-blend fuel through October 31.
Meanwhile, crude oil production in the U.S. remains at a record high. The U.S. Energy Information Administration (EIA) reports that crude production in this country is holding steady at 13.5 million barrels per day for the week ending Oct. 25. This is the third consecutive week that U.S. output has been at this level The previous record was 13.4 million barrels per day first reached in August. The U.S. has been the top producer of crude oil in the world since 2018 and has been increasing its oil production since about 2009.
Oregon is one of 47 states where prices are lower now than a week ago. New Mexico (-12 cents) has the largest week-over-week drop in the nation. Ohio (+4 cents) has the biggest week-over-week increase.
After eight weeks, Hawaii ($4.58) bumps California ($4.54) as the state with the most expensive gas in the nation. Washington ($4.02) is third. These are the three states with averages at or above $4 a gallon, same as a week ago. This week 22 states and the District of Columbia have averages in the $3 range. There are 25 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.64) and Mississippi ($2.66). No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold. At the time, the COVID-19 pandemic drove significant declines in crude oil and gasoline demand in the U.S. and around the world.
The difference between the most expensive and least expensive states is $1.94 this week, compared to $190 a week ago.
Oregon is one of 46 states and the District of Columbia with lower prices now than a month ago. The national average is eight cents less and the Oregon average is five cents less than a month ago. Colorado (-26 cents) has the largest month-over-month drop in the nation. Georgia (+16 cents) has the largest monthly increase in the nation.
Oregon is one of 49 states and the District of Columbia with lower prices now than a year ago. The national average is 32 cents less and the Oregon average is 67 cents less than a year ago. This is the second-largest year-over-year drop in the nation. Nevada (-71 cents) has the largest year-over-year drop.
