Gas and diesel prices are higher in all 50 states this week, and the national average price for diesel is at an all-time high of $6.23 per gallon, while the Oregon average price for diesel is at the all-time high of $6.67. Crude oil prices have soared back above $100 per barrel due to new attacks on energy infrastructure in Saudi Arabia, attacks on ships in the Red Sea, and the continued disruption of ship traffic in the Strait of Hormuz. For the week, the national average for regular gasoline jumps 18 cents to $4.33 a gallon. The Oregon average adds 10 cents to $5.12 a gallon. Oregon has one of the smallest week-over-week increases in the country.
Gas and diesel prices are climbing at the time of year when prices typically decline due to reduced demand and the switch to cheaper winter-blend fuel.
The national average for regular gas is at its highest price ever for this time of year. The previous high price for mid-September was reached in 2023. On this date in 2023 (Sept. 15), the national average was at $3.87, compared to $4.33 today.
The Oregon average is also at its highest price ever for this time of year. On this date in 2023, (Sept. 15), Oregon drivers were paying an average price of $4.70, compared to $5.12 today.
Crude oil prices are at four-month highs above $100 per barrel. Last Friday, a drone attack hit Saudi Arabia’s East-West pipeline, which was the kingdom’s alternate route around the Strait of Hormuz. In addition, new hostilities in the Red Sea over another critical shipping lane, the Bab el-Mandeb, and the continued significant reduction in shipping traffic in the Strait of Hormuz put upward pressure on crude oil prices. The war between Russia and Ukraine is also pressuring crude prices, as Ukrainian drone strikes have taken a significant amount of Russia’s refining capacity offline.
“Drivers typically see relief at the pumps this time of year as summer travel tapers off and stations switch to less expensive winter-blend fuel. But ongoing supply chain disruptions are pushing crude oil prices higher, which translates into higher pump prices,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
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.
Another critical shipping lane in the Middle East, the Bab el-Mandeb Strait in the Red Sea, is also being impacted as the Yemen-based Houthi militia has effectively taken control of the strait, which is located between the Arabian Peninsula and the Horn of Africa.
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 8.92 million barrels per day to 8.55 million for the week ending September 4. This compares to 8.51 million b/d a year ago. Total domestic gasoline supply increased from 205.7 million to 206.9 million barrels. Gasoline production decreased last week from 9.8 million barrels per day to 9.3 million barrels.
In addition to the conflict in the Middle East, pump prices are also impacted by the normal seasonal factors. 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.
This year, though, pump prices are elevated for this time of year due to all of the global geopolitical tensions.
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.
The U.S. price of crude oil (West Texas Intermediate) remains above $100 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. Crude prices rose again as the conflict escalated again.
WTI is trading around $105 today, compared to $93 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 and the Red Sea, 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 13.95 million barrels per day for the week ending September 4. 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
All 50 states and the District of Columbia have higher gas prices this week. Michigan (+41 cents) has the largest week-over-week jump in the nation. Oregon (+10 cents) has one of the smallest week-over-week increases – it’s the 46th-largest. Arizona (+4 cents) has the smallest week-over-week increase.
California ($6.02) has the most expensive gas in the nation for the ninth week in a row and is the only state with an average at or above $6 per gallon. There are five states with averages at or above $5 per gallon, 33 states and the District of Columbia with averages at or above $4 a gallon, and 11 states with 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 ($3.59) and Texas ($3.86). 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 $2.43 this week, compared to $2.44 a week ago.
Oregon is one of 46 states and the District of Columbia with higher prices now than a month ago. The national average is 26 cents more and the Oregon average is 40 cents more than a month ago. Utah (+48 cents) has the largest month-over-month increase. Ohio (-11 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 $1.15 more, while the Oregon average is 82 cents more than one year ago. Oregon has the second-smallest year-over-year increase in the nation. Indiana (+45 cents) has the smallest. Utah (+$1.49) 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. Florida (+64 cents) has the largest week-over-week jump. Hawaii (+8 cents) has the smallest.
For the week, the national average shoots up 37 cents to $6.27 a gallon, which is a new all-time record high. The national average price for diesel has been setting new record highs daily since September 4, when it rose to $5.85 a gallon. The previous record high for diesel was $5.816 set on June 19, 2022.
The Oregon average soars 41 cents to $6.67 per gallon, which is a new all-time record high. The Oregon average price for diesel has been setting new record highs daily since September 12, when it climbed to $6.55 per gallon. The previous record high was $6.47 set on July 3, 2022.
A year ago the national average for diesel was $3.69 and the Oregon average was $4.49.
Source: AAA