Why Oregon gas prices keep rising

Published 1:29 pm Friday, August 4, 2023

As gas prices nationwide climbed to their highest prices since last November, Oregonians are seeing increases at the pump, too.

AAA Oregon/Idaho reported that Oregon’s average inched up four cents from last week, to $4.62 per gallon. That’s nearly a dollar higher than this year’s low, around $3.69, in January. The national average hit $3.78, a 14-cent jump from last week and the highest average price so far this year.

Prices are still far below what they were last summer, when Oregon hit a record high of $5.55 per gallon, and the national

average climbed to about $5.

Heat waves have led to outages at several oil refineries around the U.S., including those in the Gulf Coast — reducing output by about 500,000 barrels per day and driving prices up.

The West Coast is geographically isolated when it comes to the gasoline market, relying on regional refineries, but it often still takes a hit when the East Coast supply is stretched thin.

And crude oil prices have been rising for the past month, up to about $81 per barrel. In June, crude oil prices ranged between $67 and $73 per barrel. The Russian invasion of Ukraine last year pushed prices upward, as the U.S. and other countries placed strict sanctions on Russia, one of the world’s largest producers of oil.

While Oregon saw one of the smallest increases nationwide this week, it remains one of the most expensive states for gas, behind only California, Washington and Hawaii.

Oregon’s new pump-your-own gas law, overturning a decades-long prohibition on self-service, will take effect Saturday, but it is not expected to impact gas prices.

Within Oregon, Curry County has the highest gas prices, averaging about $4.97 per gallon. Josephine and Lake counties are close behind, and Multnomah County is averaging $4.77 for a gallon of gas this week.

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