As new year begins, AAA says Oregon and Washington see the largest gas price declines in the nation
PORTLAND, Ore. (KTVZ) – It’s another week of declines at the gas pumps as 2026 begins, AAA Oregon/Idaho reported Tuesday.
Gas prices continue to fall in Oregon and most other states this week, driven by the usual seasonal factors of low demand and cheaper winter-blend fuel. In addition, crude oil prices remain below $60 per barrel.
For the week, the national average for regular slips two cents to $2.82 a gallon. The Oregon average loses six cents to $3.39 a gallon. Oregon and Washington (-6 cents to $3.82) both have the largest weekly declines in the nation.
Bend's average gas price drops a nickel, to $3.27 a gallon.
“After some years with wild swings in gas prices due to the pandemic, the Russian invasion of Ukraine, tensions in the Middle East, and other factors, 2025 was a relatively calm year at the pumps,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Gas prices in Oregon and Washington were impacted by two closures of the Olympic Pipeline in September and November 2025 which temporarily caused prices to climb. But otherwise, gas prices tended to follow the seasonal trends of rising in the spring ahead of the switch to the more expensive summer-blend fuel, and declining in the fall and winter due to the annual switch to the cheaper winter-blend gas and the usual seasonal drop in demand for gasoline.
The Oregon average for regular gas began 2025 at $3.45 a gallon and ended the year at $3.43. The highest price of the year was $4.297 on September 13 and 14. The lowest price of the year was $3.43 on December 31.
The national average began 2025 at $3.06 a gallon and ended the year at $2.84. The highest price of the year was $3.268 on April 4. The lowest price of the year was $2.825 on December 29.
Demand for gasoline in the U.S. gasoline decreased from 8.94 million b/d to 8.56 million b/d for the week ending December 26. This compares to 8.17 million b/d a year ago. Total domestic supply of gasoline increased from 228.5 million barrels to 234.3 million. Gasoline production decreased last week, averaging 9.5 million barrels per day compared to 9.8 million barrels the previous week.
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.
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) has mostly been in the upper $50s to mid-$70s since September 2024.
WTI is trading at $58 today, compared to $58 a week ago and $74 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 impacted by economic news as well as geopolitical events around the world including the current economic uncertainty, unrest in the Middle East, 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 prices were volatile after the attack on Israel by Hamas in October 2023. While Israel and the Palestinian territory are not oil producers, there were concerns that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region.
Crude oil prices declined after October’s fragile peace agreement between Israel and Hamas. In addition, production cuts by OPEC+ in previous years tightened global crude oil supplies, which continued to impact prices. But in 2025, the cartel boosted production which put downward pressure on crude oil prices.
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 49% of what we pay for in a gallon of gasoline is for the price of crude oil, 14% is refining, 21% distribution and marketing, and 17% 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 remains at 13.83 million barrels per day for the week ending December 26. 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
Oregon is one of 42 states and the District of Columbia with lower prices now than a week ago. Oregon (-6 cents) and Washington (-6 cents to $3.82) have the largest week-over-week declines in the nation. Delaware (+14 cents) has the biggest week-over-week increase in the country.
Hawaii ($4.42) has the most expensive gas in the nation for the fourth week in a row. California ($4.25) is second. These are the only states with averages at or above $4 a gallon. This week seven states and the District of Columbia have averages in the $3-range. There are 40 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.24) and Iowa ($2.35) and. 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 $2.19 this week, compared to $2.18 a week ago.
All 50 states and the District of Columbia have lower prices now than a month ago. The national average is 15 cents less and the Oregon average is 33.5 cents less than a month ago. Oregon has the second-largest month-over-month decline in the nation. Idaho (-34 cents) has the biggest month-over-month drop in the nation.
Oregon is one of 49 states and the District of Columbia with lower prices now than a year ago. The national average is 25 cents less, while the Oregon average is seven cents less. Colorado (-52 cents) has the largest year-over-year drop in the nation. Alaska (+22 cents) 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 six of the 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.
| Rank | Region | Price on 1/6/2026 |
| 1 | Hawaii | $4.42 |
| 2 | California | $4.25 |
| 3 | Washington | $3.82 |
| 4 | Alaska | $3.54 |
| 5 | Oregon | $3.39 |
| 6 | Nevada | $3.37 |
| 7 | District of Columbia | $3.16 |
| 8 | Pennsylvania | $3.04 |
| 9 | Vermont | $3.04 |
| 10 | New York | $3.03 |
As mentioned above, Hawaii has the most expensive gas in the country for the fourth consecutive week. California, Washington, Alaska, Oregon, and Nevada round out the top six. Arizona is 11th. Oregon is fifth most expensive for the third week in a row.
All seven states in the West Coast region have week-over-week decreases. Oregon (-6 cents) and Washington (-6 cents) have the largest declines in the nation. Arizona (-3 cents), California (-2 cents), Alaska (-2 cents), Nevada (-2 cents), and Hawaii (-3/10ths of a cent) also have lower prices this week.
The refinery utilization rate on the West Coast decreased from 82.6% to 79.6% for the week ending December 26. This rate has ranged between about 70% to 93% in the last year. The latest national refinery utilization rate ticked up from 94.6% to 94.7%.
The refinery utilization rate measures how much crude oil refineries are processing as a percentage of their maximum capacity. A low or declining rate can put upward pressure on pump prices, while a high or rising rate can put downward pressure on pump prices.
According to EIA’s latest weekly report, total gas stocks in the region declined from 29.93 million bbl. to 29.58 million bbl. for the week ending December 26. An increase in gasoline stocks can put downward pressure on pump prices, while a decrease in gasoline stocks can put upward pressure on pump prices.
Oil market dynamics
Crude oil prices are up slightly to start this week, as investors weigh the impacts from the U.S. action in Venezuela and how it might impact that country’s large oil reserves. In addition, OPEC+ said Sunday that it would keep its oil production steady.
Meanwhile, the EIA reports that crude oil inventories decreased by 1.9 million barrels from the previous week. At 422.9 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year.
At the close of Friday’s formal trading session, WTI slipped 10 cents to close at $57.32. At the close of Monday’s formal trading session, WTI gained $1.00 to settle at $58.32. Today crude is trading around $58, same as a week ago. Crude prices are about $15 less than a year ago. ($73.56 on January 6, 2025)
Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
Diesel
For the week, the national average slips three cents to $3.53 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average falls four cents to $4.04. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.51 and the Oregon average was $3.76.
Find current fuel prices at GasPrices.AAA.com.
