The recent dip in gas prices has reversed as crude oil prices remain stubbornly elevated. Upward pricing pressure on concerns that less Russian oil will enter the global market is countered by fears of a COVID-induced economic slowdown in China, the world’s leading oil consumer. These opposing forces are causing the oil price to remain near $100 per barrel. For the week, the national average for regular adds three cents to $4.13 a gallon. The Oregon average holds steady at $4.67.
“Pump prices will struggle to fall as long as the price of oil remains elevated. While pump prices have slipped from record highs set in March, consumers shouldn’t expect any dramatic drops this spring,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
The national and Oregon averages are both a bit lower than their record highs set last month. The national average peaked at $4.331 on March 11 while the Oregon average peaked at $4.739 on March 11. These prices eclipse the old record highs set in 2008 when the national average peaked at $4.11 on July 17, and the Oregon average peaked at $4.29 on July 3.
On average, about 53% of what we pay for in a gallon of gasoline is for the price of crude oil,12% is refining, 21% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
About 3% of oil, and a total of 8% of oil and refined products used in the U.S. last year came from Russia, while about 25% of Europe’s oil is imported from Russia. The U.S. is the largest oil producer in the world. Other top producers are Saudi Arabia and Russia.
Demand for gasoline in the U.S. is up slightly, despite the high pump prices, from 8.73 million b/d to 8.86 million b/d. Total domestic gasoline stocks decreased by nearly 1 million bbl to 232.3 million bbl last week, according to the U.S. Energy Information Administration (EIA).
Meantime, consumers can enjoy a tasty gas price–related treat courtesy of Krispy Kreme Doughnuts. For the next two Wednesdays, Krispy Kreme will lower the price of a dozen Original Glazed donuts to the national average that AAA reports each Monday. The offer runs through Wednesday, May 4. A dozen glazed doughnuts typically cost around $12. This Wednesday’s dozen should cost $4.12, not including sales tax, only in shop, drive-through, and online pickup.
Oregon is one of 11 states where prices have changed by a penny or less in the last week, while 41 states and the District of Columbia have week-over-week increases. Delaware (+15 cents) has the largest weekly jump. North Carolina (-2 cents) has the largest weekly drop.
California ($5.68) is the most expensive state in the nation and is one of three states with an average above $5 a gallon. There are 26 states and the District of Columbia with an average at or above $4 a gallon.
The cheapest gas in the nation is in Georgia ($3.71) and Arkansas ($3.74). This week no states have averages below $3 a gallon, same as a week ago. For the 68th week in a row, no state has an average below $2 a gallon.
Oregon is one of 39 states and the District of Columbia with lower prices now than a month ago. The national average is 11 cents less and the Oregon average is six cents less than a month ago. Connecticut (-30 cents) has the largest month-over-month drop. Maryland (+27 cents) has the largest monthly increase.
All 50 states and the District of Columbia have higher prices now than a year ago. Every state and D.C. have a current average that’s a dollar or more higher than a year ago. The national average is $1.24 more and the Oregon average is $1.42 more than a year ago. This is the sixth-largest yearly increase in the nation. California (+$1.69) has the biggest yearly increase. Georgia (+$1.02) has the smallest year-over-year increase.
Source: AAA Oregon/Idaho