Memorial Day gas prices in Oregon hit record high despite recent drop
PORTLAND, Ore. (KTVZ) – Gas prices are pulling back in 44 states, including Oregon this week. But Memorial Day weekend gas prices in Oregon were the highest ever for the holiday, while the national average was the highest in four years. Crude oil prices moved lower last week as the U.S. and Iran seemed to be moving closer to a deal to end the war; however, oil prices are up again today after U.S. strikes on Iran. For the week, the national average for regular gasoline slips four cents to $4.49 a gallon. The Oregon average loses four cents to $5.30 a gallon.
Gas prices were significantly higher than last year for travelers who hit the road over the Memorial Day holiday weekend. The Oregon average for regular gas this Memorial Day was $5.31 a gallon, which beats the previous record high for the holiday of $5.20 set in 2022. The national average was $4.51 this Memorial Day, just below the record high of $4.62 for the holiday set in 2022.
AAA expected travel to reach a new record over the Memorial Day holiday weekend with a slight increase over last year. AAA projected 45 million Americans (13.1% of the population) including 620,000 Oregonians would travel 50 miles or more from home this Memorial Day weekend. 87% of holiday travelers were projected to go by car and 8% were expected to fly. Find all the details in the AAA Memorial Day travel news release.
Pump prices are the highest they’ve been during this time of year since 2022 after Russia’s invasion of Ukraine sent crude oil prices above $100 per barrel.
The National average for regular gas was $2.98 and Oregon average was $3.92 on Feb. 28, the day the U.S. and Israel launched airstrikes against Iran.
Crude oil prices remain volatile, with dramatic swings driven by concerns of how the conflict with Iran impacts global oil supplies. Since the conflict with Iran started, prices for West Texas Intermediate, the U.S. benchmark for crude, have ranged between $71 and nearly $113 per barrel. Crude was at $67 per barrel on Feb. 27, the day before the conflict began.
“Crude oil prices have slipped from recent highs above $100 per barrel but still remain about 30% higher since the conflict with Iran began on February 28. Prices will continue to be volatile as markets react to news coming out of the Middle East, and that means gas prices will remain elevated,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
In general, every $1 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.
For now, the Strait of Hormuz remains closed. About 20% of the world’s oil and refined products flow through the Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran. Tankers traveling through the Strait of Hormuz carry oil from major producers in the Middle East including Saudi Arabia, Kuwait, Bahrain, UAE, Qatar, Iraq and Iran. Any disruption in the straight can impact global oil supplies and send crude oil prices higher.
The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is $5.353 on May 20. The lowest price of the year so far is $3.33 on January 20. The record high for the Oregon average is $5.548 set on June 15, 2022.
The Washington average for regular gas began 2026 at $3.86 a gallon. The highest price of the year so far is $5.789 on May 20, which is the record high for Washington. The lowest price of the year so far is $3.79 on January 14.
The national average began 2026 at $2.83 a gallon. The highest price of the year so far is $4.564 on May 21. The lowest price of the year so far is $2.795 on January 11. The record high for the national average is $5.016 set on June 14, 2022.
Demand for gasoline in the U.S. gasoline increased from 8.75 million b/d to 8.76 million for the week ending May 15. This compares to 8.77 million b/d a year ago. Total domestic gasoline supply decreased from 215.7 million barrels to 214.2 million. Gasoline production decreased last week, averaging 9.3 million barrels per day, compared to 9.8 million barrels the previous week.
In addition to the conflict in the Middle East, pump prices are also impacted by the normal seasonal factors. 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.
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.
The U.S. price of crude oil (West Texas Intermediate) remains elevated, due to global supply disruptions caused by the conflict with Iran. WTI had mostly been in the upper $50s to mid-$70s since September 2024. Oil prices rose in February, in part driven by escalating tensions between the U.S. and Iran. Then crude oil prices shot up after the strikes on Iran by the U.S. and Israel on February 28. Any conflict with Iran can send oil prices higher, as Iran is a major oil producer and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.
WTI is trading around $95 today, compared to $108 a week ago and $61 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 determined in international markets, based on global supply and demand, and are impacted by economic news as well as geopolitical events around the world including the current conflict with Iran and disruptions in the Strait of Hormuz, economic uncertainty, the situation in Venezuela, tensions over Greenland, sanctions on Iran’s oil, 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.
In addition, moves by OPEC+ impact crude oil prices. Production cuts by the cartel 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. For the first quarter of 2026, OPEC+ said it would not have production hikes in the first quarter of this year due to lower demand. However, at its meeting on March 1, OPEC+ said it would boost oil production this spring, by 206,000 barrels a day in April and 188,000 barrels a day in June. However, oil production in the Middle East has plunged due to the Iran war, according to OPEC data.
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 52% of what we pay for in a gallon of gasoline is for the price of crude oil, 17% is refining, 13% distribution and marketing, and 18% 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 is at 13.70 million barrels per day for the week ending May 15. 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 44 states and the District of Columbia with higher prices this week. Indiana (-20 cents) has the largest week-over-week decline in the nation. Kentucky (+8 cents) has the biggest week-over-week increase in the country. The average in Texas is flat.
California ($6.15) has the most expensive gas in the nation for the 16th week in a row and is the only state with an average at or above $6 per gallon. Washington ($5.76) is second, Hawaii ($5.67 is third, Oregon ($5.30) is fourth, Alaska ($5.25) is fifth, and Nevada ($5.25) is sixth. These are the five states with averages at or above $5 per gallon. This week there are 38 states and the District of Columbia with averages at or above $4 a gallon. Only six states have averages in the $3-range. No state has an average in the $2 range this week.
The cheapest gas in the nation is in Indiana ($3.89) and Mississippi ($3.96). 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 $2.22 this week, compared to $2.15 a week ago.
All 50 states and the District of Columbia have higher prices now than a month ago. The national average is 39 cents more and the Oregon average is 23 cents more than a month ago. Oregon has the 46th-largest month-over-month increase in the country. Ohio (+71 cents) has the largest month-over-month jump in the nation. Hawaii (+2 cents) has the smallest.
All 50 states and the District of Columbia have higher prices now than a year ago. The national average is $1.31 more, while the Oregon average is $1.28 more. Oregon has the 40th-largest year-over-year increase in the country. Alaska (+$1.59) has the largest year-over-year jump in the nation. Indiana (+69 cents) has the smallest and is the only state with a year-over-year increase that is less than $1 per gallon.
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.
As mentioned above, California has the most expensive gas in the country for the 16th consecutive week. Washington, Hawaii, Oregon, Alaska, and Nevada round out the top six. Arizona is eighth. Oregon is fourth most expensive for the seventh week in a row.
Six of the seven states in the West Coast region have week-over-week decreases in their average pump prices this week: Oregon (-4 cents), Arizona (-4 cents), California (-4 cents), Alaska (-3 cents), Washington (-3 cents), and Nevada (-4/10ths of a cent). Hawaii (+2 cents) is the only state in the region with a week-over-week increase.
The refinery utilization rate on the West Coast edged lower from 81.8% to 81.6% for the week ending May 15. This rate has ranged between about 72% to 93% in the last year. The latest national refinery utilization rate ticked down from 91.7% to 91.6%.
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 decreased from 28.29 million bbl. to 27.87 million bbl. for the week ending May 15. 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 continue to be volatile. Crude prices fell below $100 per barrel last week on optimism of a peace agreement between the U.S. and Iran. Oil prices have seen significant ups and downs since the start of the Iran conflict, as markets react to the daily developments in the Middle East.
Meanwhile, the EIA reports that crude oil inventories decreased by 7.9 million barrels from the previous week. At 445 million barrels, U.S. crude oil inventories are about 2% below the five-year average for this time of year.
At the close of Friday’s formal trading session on the NYMEX, WTI added 25 cents to close at $96.60. U.S. markets were closed Monday in observation of Memorial Day. Today crude is trading around $94, compared to $108 a week ago. Crude prices are about $34 more than a year ago. ($60.89 on May 26, 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
Diesel prices are lower in all 50 states this week. Colorado (-22 cents) has the largest week-over-week decrease, while Arizona (-1 cent) has the smallest.
For the week, the national average loses seven cents to $5.58 a gallon. The record high is $5.816 set on June 19, 2022.
The Oregon average declines four cents to $6.14. The record high is $6.47 set on July 3, 2022.
A year ago the national average for diesel was $3.53 and the Oregon average was $4.12.
