Pump prices have steadily decreased since May 22, but uncertainty remains over the fragile peace agreement between the U.S. and Iran and whether normal shipping traffic will resume in the Strait of Hormuz.
The declining pump prices come as Oregonians get ready to travel for Independence Day. AAA expects a slight uptick over last year’s travel volume, even though pump prices will be at four-year highs for the holiday. For the week, the national average for regular gasoline loses 12 cents to $3.93 a gallon. The Oregon average tumbles 15 cents to $4.83 a gallon.
AAA expects travel for Independence Day to set a new record, projecting that 72.2 million Americans – including 877,000 Oregonians – will travel 50 miles or more from home over the Fourth of July holiday period. But the increase is only 0.5%, which is smaller than recent year-over-year gains. The number of travelers driving and flying to their destinations is relatively flat compared to last year, while travel by other modes, including cruises, is the category seeing the biggest increase, up 5.3% compared to last year.
The Oregon average for regular gas fell below $5 per gallon on June 14. The Oregon average was at or above $5 April 7-10, and again from April 24 through June 13.
The national average fell below $4 per gallon on June 18. The national average was at or above $4 from March 31 through June 17.
Last week’s agreement between the U.S. and Iran to end the war and reopen the Strait of Hormuz sent crude oil prices sharply lower, between about $75 and $80 per barrel. But then crude prices rebounded somewhat due to uncertainty over whether Iran would allow ships to pass through the strait. Oil prices declined to start this week, trading around $75 on Monday and $73 on Tuesday, after Iran’s foreign minister said progress had been made in talks with the U.S. Another factor pushing crude prices lower was the announcement from U.S.
Treasury Secretary Scott Bessent that there would be a 60-day waiver of sanctions on the purchase of Iranian oil.
For now, more ships are passing through the Strait of Hormuz, but current numbers are well below the 100 to 130 ships that passed through the waterway each day before the conflict began. Mines in the strait need to be removed and it will take time for oil production in the Middle East to rebound.
The U.S. price of crude oil (West Texas Intermediate) fell sharply last week and has remained between about $75 and $80 per barrel, as markets reacted to the preliminary peace deal. WTI traded around $73 to begin this week, compared to $76 a week ago and $69 a year ago.
The Oregon average for regular gas began this year at $3.42 a gallon. The highest price of the year so far is $5.353 on May 20; the lowest price of the year so far is $3.33 on Jan. 20. The record high for the Oregon average is $5.548 set on June 15, 2022.
The Washington average for regular gas began this year at $3.86 a gallon. The highest price of the year so far is $5.789 on May 20, which is the record high for Washington. The lowest price of the year so far is $3.79 on Jan. 14.
The national average began 2026 at $2.83 a gallon. The highest price of the year so far is $4.564 on May 21; the lowest price of the year so far is $2.795 on Jan. 11. The record high for the national average is $5.016 set on June 14, 2022.
Oregon is one of 49 states and the District of Columbia with lower gas prices this week. Arizona (-22 cents) has the largest week-over-week decline in the nation. Maryland (-4/10 of a cent) has the smallest decrease. Delaware (+4/10 of a cent) is the only state with a week-over-week increase.
California ($5.56) has the most expensive gas in the nation for the 20th week in a row. Hawaii ($5.54) is second and Washington ($5.32) is third. These are the three states with averages at or above $5 per gallon. This week there are 15 states and the District of Columbia with averages at or above $4 a gallon, and 32 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 Indiana ($3.32) and Texas ($3.39). 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 $2.24 this week, compared to $2.35 a week ago.
All 50 states and the District of Columbia have lower prices now than a month ago. The national average is 60 cents less and the Oregon average is 49 cents less than a month ago. Colorado (-80 cents) has the largest month-over-month drop in the nation; Hawaii (-11 cents) has the smallest.
All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 70 cents more, while the Oregon average is 76 cents more. Oregon has the 24th largest year-over-year increase in the country. Alaska (+$1.25) has the largest year-over-year jump in the nation. Indiana (+23 cents) has the smallest.
The West Coast region continues to have the most expensive pump prices in the nation, with six of the seven states in the top 10.
As mentioned above, California has the most expensive gas in the country for the 20th consecutive week. Hawaii, Washington, Alaska, Oregon, and Nevada round out the top six. Arizona is 11th. Oregon is fifth most expensive for the fourth week in a row.
All seven states in the West Coast region have week-over-week decreases in their average pump prices this week. Arizona (-22 cents) has the largest decline in the region and the nation. Washington (-17 cents), California (-15 cents), Oregon (-15 cents), Nevada (-14 cents), Alaska (-11 cents), and Hawaii (-4 cents) also have lower pump prices week over week.
Diesel prices are lower in 49 states and the District of Columbia this week. Montana (-28 cents) has the largest week-over-week decrease; Delaware (-7 cents) has the smallest. Hawaii (+4 cents) is the only state with a week-over-week increase. For the week, the national average plunges 19 cents to $5.00 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average plummets 21 cents to $5.63. The record high is $6.47 set on July 3, 2022. A year ago, the national average for diesel was $3.68 and the Oregon average was $4.42.
