AAA: Oregon’s gas price decline tops U.S.

Retail gas prices are down in 40 states and Washington D.C. this week, with Oregon drivers enjoying the largest weekly drop in the nation of 15 cents, and the largest monthly drop of 48 cents, AAA Oregon-Idaho reported Tuesday.

The Oregon average for regular unleaded is $3.21, which is the lowest price since Feb. 1, 2011.

The national average for regular unleaded falls another six cents this week to $3.03 a gallon which is the lowest price since late December 2010, AAA Oregon/Idaho Public Affairs Director Marie Dodds said.

Washington has the second-largest drop of the week at 13 cents, and the second-largest monthly drop of 47 cents.

“Gas prices normally go down this time of year, but this year’s drop has been more extreme because of the sharply declining price of crude oil,” Dodds said.

Drivers in every state and Washington, D.C. continue to enjoy month-over-month savings at the pump. Oregon has the largest drop in the last month with the state average down a whopping 48 cents in this timeframe. Washington has the second-largest monthly decline at 47 cents. In all, 35 states are enjoying month-over-month declines of a quarter or more.

Prices are also down in every state and Washington D.C. compared to a year ago. Year-over-year, the average price at the pump is down by a dime or more in 46 states, including Oregon and Washington, as well as Washington D.C.

This week, Oregon and Washington drop out of the top ten most expensive states for gasoline for the first time since early April. Oregon falls to 14 th , down from eighth last week; Washington is 12 th most expensive down from ninth a week ago.

Nineteen states have an average gas price below $3 per gallon, with drivers in South Carolina paying the least at $2.78 per gallon. Hawaii remains the nation’s most expensive market for retail gasoline and is the only state with an average above $4 per gallon.

The cost of crude oil accounts for approximately two-thirds of the price consumers pay for gasoline, which means gas prices should continue to fall as long as crude oil prices decline.

AAA says the national average will likely drop below the $3 mark in the coming days. The Oregon average could fall another dime or more by the end of the year.

“Many Oregon gas stations are already selling regular unleaded for less than $3 a gallon, so consumers should shop around for the best prices in their area,” adds Dodds.

You can check user-reported gas prices in the region at KTVZ.COM’s Pump Patrol page.

The national and Oregon averages are well below their 2014 highs. The national average peaked at $3.70 on April 28, while the Oregon average reached its 2014 high of $3.98 on July 3.

Continuing unrest in Iraq and geopolitical tensions in Eastern Europe have taken a backseat to an emerging belief by many market watchers that global supply – including significantly higher oil production in the United States – is outpacing global demand growth.

This assessment has helped sink West Texas Intermediate (WTI) crude oil prices to near $80 per barrel for the first time since June 2012 and has fueled speculation of how the Organization of Petroleum Exporting Countries (OPEC) will respond to the falling price of crude.

OPEC is scheduled to convene on November 27 in Vienna to discuss global demand and the impact of increased production by non-OPEC countries.

West Texas Intermediate (WTI) settled a cent lower at $81.00 at the close of Monday’s formal trading on the NYMEX. Today WTI is trading around $81 a barrel, compared to $83 a week ago. Crude prices are down about 14 percent over the last month and are about $17 lower than a year ago.

Regular Unleaded

Current

Week Ago

Month Ago

Year Ago

Highest Rec. Avg. Price

Date

National Average

$3.034

$3.094

$3.340

$3.285

$4.114

7/17/2008

Oregon Average

$3.209

$3.359

$3.695

$3.448

$4.294

7/3/2008

Portland

$3.188

$3.337

$3.670

$3.429

$4.278

6/21/2008

Salem

$3.201

$3.355

$3.712

$3.449

$4.262

7/8/2008

Eugene/Springfield

$3.170

$3.329

$3.686

$3.381

$4.330

6/28/2008

Medford/Ashland

$3.101

$3.292

$3.649

$3.490

$4.379

7/11/2008

Bend

$3.245

$3.403

$3.802

$3.417

$4.345

6/20/2008

Vancouver, WA

$3.156

$3.327

$3.670

$3.406

$4.349

6/28/2008

For the seventh week in a row, there’s only one state, Hawaii, with regular unleaded at or above $4 a gallon. Nineteen states have averages below $3 per gallon, up from 17 a week ago. Seven additional states are within a dime of the $3 mark.

Hawaii has the most expensive gas in the country for the 105 th consecutive week at $4.06, followed by Alaska at $3.76, New York at $3.40, California at $3.38 (down 11 cents and down from third last week), and Connecticut at $3.36. Idaho is sixth up from seventh last week at $3.31 (down a nickel). Washington is 12 th down from ninth last week at $3.23 (down 13 cents). Oregon falls to 14 th down from eighth place last week at $3.21 (down 15 cents). After six weeks, South Carolina bumps Missouri as the state with the cheapest gas in the country at $2.78 a gallon (down 9 cents).

Diesel prices are also moving down. The national average dips two cents to $3.61 a gallon. Oregon’s average falls six cents to $3.69. Diesel is at or above $4 a gallon in one state, down from two last week. Hawaii is most expensive at $4.86, followed by Alaska at $3.98, New York at $3.91, Connecticut at $3.87 and California at $3.85 (down a nickel). Idaho is sixth for the second consecutive week at $3.81 (down two cents). Washington is ninth down from seventh last week at $3.77 (down a nickel). Oregon is 20 th down from 13 th last week. A year ago, the national average for diesel was $3.86 and Oregon’s was $3.96.