Last week’s shutdown of the Olympic Pipeline for maintenance and repairs, California refineries’ transition to summer-blend fuel, and higher crude prices due to ongoing U.S./Iran tensions created the perfect storm to drive up wholesale fuel prices in the Pacific Northwest.
The closure of the pipeline sent gas prices skyrocketing in Oregon and Washington, at the same time that refineries in California started the transition to summer-blend fuel. A spokesperson for BP said that the pipeline resumed operations last Thursday, after being shut down for maintenance and repairs on Tuesday. Consumers were hit with double-digit increases at the pumps. Higher crude oil prices due to geopolitical tensions between the U.S. and Iran are also putting upward pressure on pump prices. For the week, the national average for regular adds three cents to $2.95 a gallon. The Oregon average soars 22 cents to $3.91 a gallon. Oregon has the biggest week-over-week jump for a state in the nation.
“The outage of the Olympic Pipeline as well as refinery maintenance in the West Coast region created very tight supplies here and drivers are feeling pain at the pumps. The re-opening of the pipeline should ease the situation a bit, but the normal seasonal price increases will continue as refineries in the region undergo maintenance ahead of the switch to summer-blend fuel,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “The unknown is how ongoing geopolitical tensions between the U.S. and Iran will impact crude oil prices, which remain elevated. Higher crude oil prices mean higher pump prices.”
The 400-mile Olympic Pipeline carries refined petroleum products from the refineries in Washington state to distribution terminals in the Pacific Northwest, including Portland. The pipeline was out of operation last September and November, and those closures also caused fuel prices in Oregon and Washington to spike.
The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is today’s price of $3.91. 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 today’s price of $2.95. The lowest price of the year so far is $2.795 on Jan. 11.
Crude oil prices climbed to $66.43 on Feb. 19, which is the highest closing price of the year so far. Crude had been in the $55 to $62 range for the past few months. Oil prices rose due to escalating tensions between the U.S. and Iran. Any conflict with Iran can send oil prices higher as Iran is a major oil producer, and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.
Oregon is one of 36 states and the District of Columbia with higher prices now than a week ago. Oregon (+22 cents) and Washington (+20 cents) have the largest week-over-week increases in the nation. Michigan (-3 cents) has the biggest week-over-week decrease in the country.
California ($4.63) has the most expensive gas in the nation for the third week in a row. Hawaii ($4.40) is second and Washington ($4.35) is third. These are the only states with averages at or above $4 a gallon. This week, seven states and the District of Columbia have averages in the $3 range. There are 40 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.37) and Arkansas ($2.50). No state has had an average below $2 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 $2.25 this week, compared to $2.29 a week ago.
Oregon is one of 39 states with higher prices now than a month ago. The national average is nine cents more and the Oregon average is 55 cents more than a month ago. Oregon has the largest month-over-month jump in the nation, and Washington (+51 cents) has the second-largest increase. Indiana (-11 cents) has the nation’s largest month-over-month drop.
Oregon is one of four states with higher prices now than a year ago. The national average is 19 cents less, while the Oregon average is 14 cents more. Oregon has the second-largest year-over-year jump in the nation, behind Washington (+20 cents). Iowa (-42 cents) has the largest year-over-year drop in the nation.
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 third consecutive week. Hawaii, Washington, Oregon, Nevada, Alaska and Arizona round out the top seven. Oregon is fourth for the second week in a row.
Six of the seven states in the West Coast region have week-over-week increases: Oregon (+22 cents) has the largest week-over-week jump in the region and the country. Washington (+20 cents), Arizona (+11 cents), Alaska (+7 cents), Nevada (+5 cents), and California (+4 cents) also have week-over-week increases. Hawaii (-3/10 of a cent) is the only state in the region with a week-over-week decline.
For the week, the national average for diesel rises eight cents to $3.73 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average adds seven cents to $4.22. The record high is $6.47 set on July 3, 2022. A year ago, the national average for diesel was $3.67 and the Oregon average was $3.87.
