Gas prices are declining for the second week in a row at a time of year when prices normally rise. The major drivers are four-year lows for crude oil prices and lackluster demand for gas. However, crude prices are moving up again, so the unseasonal downward trend in gas prices may be ending soon. For the week, the national average for regular slips one cent to $3.17 a gallon. The Oregon average loses five cents to $3.93 a gallon.

“Crude oil prices are moving up from some of the lowest prices in four years. So far, 2025 has been fairly quiet at the pumps, as the stock markets and crude oil prices moved lower in response to economic uncertainties and the changing tariffs announced by the Trump administration. In addition, OPEC+ has increased oil production. All of these factors have put downward 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 $3.17. 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 11 Oregon counties have averages at or above $4, down from 12 counties a week ago:

Clackamas $4.03
Clatsop $4.05
Columbia $4.13
Harney $4.10
Jackson $4.04
Josephine $4.08
Lake $4.05
Multnomah $4.11
Tillamook $4.03
Wallowa $4.05
Washington $4.08

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 is holding steady at 13.46 million barrels per day for the week ending April 11. 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 in the upper $60s to mid-$70s for much of the last three months, but crude prices have dropped as markets reacted to President Trumps tariffs and the impact on U.S. and global markets. The lowest closing price since September was $59.58 on April 8, which was the lowest closing price since April 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 $65 today compared to $61 a week ago and $83 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. The cartel has said it would boost production by 411,000 barrels a day in May.

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 58% of what we pay for in a gallon of gasoline is for the price of crude oil, 10% is refining, 16% distribution and marketing, and 16% are taxes, according to the U.S. Energy Information Administration.

Demand for gasoline in the U.S. increased slightly from 8.43 b/d last week to 8.46 b/d. for the week ending April 11, according to the U.S. Energy Information Administration (EIA). This compares to 8.66 million b/d a year ago. Meanwhile, total domestic gasoline supply decreased from 236.0 million barrels to 234.0. Gasoline production increased last week, averaging 9.4 million barrels per day, compared to 8.9 million barrels daily the previous week.

Pump prices will likely continue to waffle, markets respond to economic developments.

Quick stats

Oregon is one of 35 states and the District of Columbia with lower prices now than a week ago. New Mexico (-9 cents) has the largest week-over-week decline. Colorado (+12 cents) has the biggest week-over-week jump in the nation. The average in Oklahoma is flat.

California ($4.83) has the most expensive gas in the nation for the 11th week in a row. Hawaii ($4.51) 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 26 states and the District of Columbia have averages in the $3-range. There are 21 states with an average in the $2 range this week.

The cheapest gas in the nation is in Mississippi ($2.68) and Oklahoma ($2.72). 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 $2.15 this week, compared to $2.17 a week ago.

Oregon is one of 32 states and the District of Columbia with higher prices now than a month ago. The national average is four cents more and the Oregon average is 20 cents more than a month ago. Alaska (+23 cents) has the largest month-over-month increase in the country. Wisconsin (-12 cents) has the largest month-over-month drop in the nation. The average in South Dakota is flat.

Oregon is one of 49 states and the District of Columbia with lower prices now than a year ago. The national average is 51 cents less and the Oregon average is 50 cents less than a year ago. Arizona (-77 cents) has the largest yearly drop. Colorado (+2/10ths of a cent) is the only state with a year-over-year increase.

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 dips two cents to $3.57 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average also slips two cents to $3.91. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $4.03 and the Oregon average was $4.29.

Source: AAA

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