Pump prices are climbing again in most states, including Oregon, this week. The national average price for regular gas is at its highest price ever for this time of year, while the Oregon average is at its highest price for mid-August since 2022. Elevated crude oil prices and the ongoing closure of the Strait of Hormuz continue to put upward pressure on pump prices. For the week, the national average for regular gasoline rises five cents to $4.07 a gallon. The Oregon average also adds five cents to $4.72 a gallon.
Crude oil prices have been above $80 since August 10 as the war with Iran continues and the Strait of Hormuz remains closed.
“Elevated crude oil prices are keeping pump prices higher than normal for this time of year. Often, pump prices will settle down in August as the summer driving season winds down and early fall routines return,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
The national average price for regular has surpassed its previous record high for mid-August set in 2022. On this date in 2022, the national average was at $3.93 compared to $4.07 today. The Oregon average is at its second-highest price ever for mid-August – on this date in 2022, the Oregon average was at $4.84 compared to $4.72 today. Pump prices and crude oil prices skyrocketed in 2022 following Russia’s invasion of Ukraine and remained elevated for much of the year.
Gas prices are significantly more expensive than they were before the conflict with Iran began. The National average for regular gas was $2.98 and Oregon average was $3.92 on Feb. 28, the day the U.S. and Israel launched airstrikes against Iran.
Crude oil prices remain volatile, with dramatic swings driven by concerns of how the conflict with Iran impacts global oil supplies. Since the conflict with Iran started, prices for West Texas Intermediate, the U.S. benchmark for crude, have ranged between $68 and nearly $113 per barrel. Crude was at $67 per barrel on Feb. 27, the day before the conflict began.
In general, every $1 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.
Shipping traffic in the Strait of Hormuz remains well below pre-conflict levels of 100 to 130 ships per day. Traffic remains significantly restricted and dangerous due to the ongoing conflict and recent attacks on vessels. Normally, about 20% of the world’s oil and refined products flow through the Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran. Tankers traveling through the Strait of Hormuz carry oil from major producers in the Middle East including Saudi Arabia, Kuwait, Bahrain, UAE, Qatar, Iraq and Iran. Any disruption in the straight can impact global oil supplies and send crude oil prices higher.
The Oregon average for regular gas began 2026 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 January 20. The record high for the Oregon average is $5.548 set on June 15, 2022.
The Washington average for regular gas began 2026 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 January 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 January 11. The record high for the national average is $5.016 set on June 14, 2022.
Demand for gasoline in the U.S. gasoline decreased from 9.03 million barrels per day to 8.96 million for the week ending August 7. This compares to 9.00 million b/d a year ago. Total domestic gasoline supply remained flat at 211.3 million. Gasoline production decreased from 209.7 million barrels to 208.7 million. Gasoline production is about the same at 9.6 million barrels per day.
In addition to the conflict in the Middle East, pump prices are also impacted by the normal seasonal factors. 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 more expensive to produce and 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. 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.
The U.S. price of crude oil (West Texas Intermediate) remains above $80 to start this week. The conflicts in the Middle East, the war between Russia and Ukraine, and market concerns about global oil supplies continue to impact prices. Crude prices fell sharply earlier this summer as markets reacted to the peace deal between the U.S. and Iran. WTI dipped below $70 for several days in late June and early July, the lowest prices since the start of the conflict.
WTI is trading around $85 today, compared to $83 a week ago and $63 a year ago. In 2025, West Texas Intermediate ranged between $80.04 (January 15) and $57.46 (October 16) per barrel. In 2024, WTI 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 determined in international markets, based on global supply and demand, and are impacted by economic news as well as geopolitical events around the world including the conflict with Iran and disruptions in the Strait of Hormuz, economic uncertainty, the situation in Venezuela, tensions over Greenland, sanctions on Iran’s oil, the conflict between Israel and Hamas, and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia.
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 52% of what we pay for in a gallon of gasoline is for the price of crude oil, 22% is refining, 15% distribution and marketing, and 12% are taxes, according to the U.S. Energy Information Administration.
Meanwhile, crude oil production in the U.S. remains at or near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in his country is at 13.81 million barrels per day for the week ending August 7. Production has been at 13.5 million barrels per day many times since October 2024. 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.
Quick stats
Oregon is one of 36 states with higher gas prices this week. Iowa (+37 cents) has the largest week-over-week jump in the nation. Delaware (-10 cents) has the largest week-over-week decline.
California ($5.57) has the most expensive gas in the nation for the fifth week in a row. Hawaii ($5.42) is second and Washington ($5.20) is third. These are the three states with averages at or above $5 per gallon. This week there are 20 states and the District of Columbia with averages at or above $4 a gallon, and 27 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 ($3.57) and Louisiana ($3.58). 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 $2.00 this week, compared to $2.10 a week ago.
Oregon is one of 36 states and the District of Columbia with higher prices now than a month ago. The national average is seven cents more and the Oregon average is 17 cents more than a month ago. Idaho (+42 cents) has the largest month-over-month increase. Virginia (-14 cents) has the biggest month-over-month decline.
All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 93 cents more, while the Oregon average is 73 cents more. Oregon has the second-smallest year-over-year gain in the country. Indiana (+38 cents) has the smallest. Colorado (+$1.29) has the largest year-over-year jump in the nation.
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
Diesel prices are higher in all 50 states and the District of Columbia this week. Delaware (+27 cents) has the largest week-over-week jump. Oregon (+4 cents) has the 42nd-largest increase. Maine (+1 cent) has the smallest.
For the week, the national average rises 15 cents to $5.47 a gallon. The record high is $5.816 set on June 19, 2022.
The Oregon average adds six cents to $5.56. The record high is $6.47 set on July 3, 2022.
A year ago the national average for diesel was $3.69 and the Oregon average was $4.47.
Source: AAA