Gas prices are rising in Oregon and other West Coast states after a fire last week at a refinery in Benicia, California in the Bay Area. The Valero refinery produces 145,000 barrels per day. Any kind of disruption to a refinery or pipeline on the West Coast tends to send prices higher across the region due to reduced supplies. Meanwhile, gas prices are showing smaller changes in most other states, but prices could climb due to Memorial Day travel. AAA projects record travel for the holiday weekend, with most going by car. For the week, the national average for regular holds steady at $3.16 a gallon. The Oregon average gains three cents to $3.93 a gallon.
The fire broke out at Valero’s refinery in Benicia, California on May 5. No injuries were reported and the cause is under investigation. The fire caused shelter in place orders for surrounding areas due to smoke from the fire.
The increase in West Coast prices comes ahead of the Memorial Day travel weekend. AAA projects record travel for the holiday, with 45.1 million Americans including 617,000 Oregonians traveling 50 miles or more from home. This is an increase of 1.4 million travelers (3.1%) over 2024 and surpasses the previous record of 44 million travelers in 2005. Find all the details, graphics, top destinations, best and worst times to drive, and advice for travelers in the AAA Memorial Day travel news release.
“Crude oil prices have jumped since last week, as markets digest news that the U.S. and China are easing tariffs. Higher crude prices and greater demand for gas over the Memorial Day holiday weekend could put upward pressure on pump prices,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
The Oregon average began 2025 at $3.45 a gallon and is currently at $3.93. The highest price of the year so far is $4.01 on April 5. The lowest price of the year so far is just under $3.45 a gallon on January 2.
The national average began 2025 at $3.06 a gallon and is currently at $3.16. The highest price of the year so far is $3.27 on April 4. The lowest price of the year so far is $3.06 on January 5.
This week eight Oregon counties have averages at or above $4, up from five a week ago.
- Clackamas $4.02
- Columbia $4.06
- Harney $4.14
- Jackson $4.05
- Josephine $4.05
- Lake $4.11
- Multnomah $4.11
- Washington $4.07
Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel, which is less likely to evaporate in warmer temperatures. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to switch to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend until June 1. Switch-over dates are earlier in California with some areas in the state requiring summer-blend fuel by April 1. Some refineries will begin maintenance and the switchover in February.
Gas prices usually 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. Prices usually decline to their lowest levels of the year in late fall and early winter before increasing again in the late winter and early spring.
Meanwhile, crude oil production in the U.S. remains near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in this country declined from 13.47 to 13.37 million barrels per day for the week ending May 2. The record high is 13.63 million barrels per day for the week of December 6. Production has been at 13.5 million barrels per day many times since October. 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.
The U.S. price of crude oil (West Texas Intermediate) had been mostly in the upper $60s to mid-$70s since last September, but crude prices dropped in early April as markets reacted to President Trumps tariffs and the impact on U.S. and global markets. Additional downward pressure on crude prices came after the decision by OPEC+ to increase production. The lowest closing price since September was $57.13 on May 5, which was the lowest closing price since February 2021. The recent high price for crude was $80.04 per barrel on January 15, which was the highest price since last August.
Crude oil is trading around $63 today compared to $59 a week ago and $79 a year ago. In 2024, West Texas Intermediate ranged between $66 and $87 per barrel. In 2023, WTI ranged between $63 and $95 per barrel. WTI reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.
Crude prices are impacted by economic news as well as geopolitical events around the world including the current economic uncertainty, unrest in the Middle East, and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia. Crude prices have been volatile after the attack on Israel by Hamas in October 2023. While Israel and the Palestinian territory are not oil producers, concerns remain that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region. In addition, production cuts by OPEC+ tightened global crude oil supplies, which continued to impact prices. But now the cartel is boosting production again, by 411,000 barrels in May and the same amount in June.
Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 54% of what we pay for in a gallon of gasoline is for the price of crude oil, 14% is refining, 16% distribution and marketing, and 17% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. decreased from 9.10 b/d last week to 8.71 for the week ending May 2, according to the U.S. Energy Information Administration (EIA). This compares to 8.80 million b/d a year ago. Meanwhile, total domestic gasoline supply slightly increased from 225.5 million barrels to 225.7. Gasoline production increased last week, averaging 9.7 million barrels per day, compared to 9.5 million barrels daily the previous week.
Pump prices are poised to rise ahead of Memorial Day travel due to higher crude oil prices and increased demand for gasoline.
Quick stats
Oregon is one of 13 states with higher prices now than a week ago. Nevada (+15 cents) and California (+13 cents) have the biggest week-over-week jumps in the nation. Indiana (-11 cents) has the largest week-over-week decline. The averages in Rhode Island, Kansas and Connecticut are flat.
California ($4.92) has the most expensive gas in the nation for the 13th week in a row. Hawaii ($4.50) is second, and Washington ($4.30) is third. These are the three states in the country with averages at or above $4 a gallon. 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 Mississippi ($2.64) and Louisiana ($2.70). 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 $2.28 this week, compared to $2.14 a week ago.
Oregon is one of 35 states and the District of Columbia with lower prices now than a month ago. The national average is three cents less and the Oregon average is six cents less than a month ago. Minnesota (-22 cents) has the largest month-over-month drop in the nation. Colorado (+10 cents) has the largest month-over-month increase.
All 50 states and the District of Columbia have lower prices now than a year ago. The national average is 46 cents less and the Oregon average is 49 cents less than a year ago. Alaska (-79 cents) has the largest yearly drop. Colorado (-7 cents) has the smallest.
West Coast
The West Coast region continues to have the most expensive pump prices in the nation with all seven states in the top 10. It’s typical for the West Coast to have six or seven states in the top 10 as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced. In addition, this region is located relatively far from parts of the country where oil drilling, production and refining occurs, so transportation costs are higher. And environmental programs in this region add to the cost of production, storage and distribution.
Diesel
For the week, the national average edges down one cent to $3.53 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average adds two cents to $3.92. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.93 and the Oregon average was $4.23.
Source: AAA