Oregon gas prices surge past $5/gallon record — but Memorial Day travel also expected to rise
PORTLAND, Ore. (KTVZ) – Pump prices are setting new record highs again this week, with the Oregon gas price average climbing above $5 a gallon for the first time ever, AAA Oregon-Idaho reported Tuesday. Despite that challenge, travel over the Memorial Day holiday is expected to hit levels not seen in five years.
The major driver in the sharply rising price of gas is the high cost of crude oil, which is above $110 per barrel. For the week, the national average for regular jumps 15 cents to $4.52 a gallon. The Oregon average soars 21 cents to $5.06.
The national and Oregon averages continue to set new record highs almost daily, eclipsing the recent record highs set in March.
“The high cost of oil, the key ingredient in gasoline, is driving these high pump prices for consumers, and unfortunately, there’s no relief in sight,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “Even the annual seasonal demand dip for gasoline during the lull between spring break and Memorial Day, which would normally help lower prices, is having no effect this year.”
On average, about 53% of what we pay for in a gallon of gasoline is for the price of crude oil,12% is refining, 21% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
Crude oil prices remain elevated due to the Russian invasion of Ukraine. Russia is one of the top three oil producers in the world, behind the U.S. and Saudi Arabia, and about 25% of Europe’s oil is imported from Russia. Tight global oil supplies made worse by the lack of product coming out of Russia have put upward pressure on crude prices. A year ago, crude was around $66 per barrel compared to $112 today.
Meanwhile, the switch to the more expensive summer blend of gasoline, which usually adds seven to ten cents per gallon depending on the market, is happening now. This switchover should be complete nationwide by early June. This summer blend switch is an annual event. It is unrelated to the Biden Administration’s announcement a few weeks ago to allow the higher ethanol E15 gas blend to remain on sale throughout the summer until September.
Demand for gasoline in the U.S. decreased slightly from 8.86 million b/d to 8.7 million b/d. Total domestic gasoline stocks decreased by 3.6 million bbl to 225 million bbl last week, according to the U.S. Energy Information Administration (EIA). Typically, lower demand would put downward pressure on pump prices. However, crude prices remain volatile, and as they surge, pump prices follow suit. Pump prices will likely face upward pressure as oil prices stay above $105 per barrel.
Quick stats
Pump prices are higher in all 50 states and the District of Columbia week-over-week, and 33 states, including Oregon, and D.C. have double-digit increases. Connecticut (+24 cents) has the largest weekly jump. Colorado (+3 cents) has the smallest weekly gain.
California ($6.02) is the most expensive state in the nation and becomes the first state to ever have an average above $6 a gallon. There are five states, including Oregon, with averages at or above $5. Every other state and D.C. has an average at or above $4 a gallon.
The cheapest gas in the nation is in Kansas ($4.01) and Oklahoma ($4.01). This week no states have averages below $3 a gallon, same as a week ago. For the 71st week in a row, no state has an average below $2 a gallon.
All 50 states and the District of Columbia have higher prices now than a month ago. The national average is 44 cents more and the Oregon average is 41 cents more than a month ago. This is the 26th-largest monthly jump in the nation. Maryland (+79 cents) has the largest monthly gain. Utah (+8 cents) has the smallest.
All 50 states and the District of Columbia have higher prices now than a year ago. Every state and D.C. have a current average that’s a dollar or more higher than a year ago. The national average is $1.48 more and the Oregon average is $1.69 more than a year ago. This is the seventh-largest yearly increase in the nation. California (+$1.89) has the biggest yearly increase. Colorado (+$1.05) has the smallest 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. This is typical for the West Coast as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced.
| Rank | Region | Price on 5/17/22 | ||
| 1 | California | $6.02 | ||
| 2 | Hawaii | $5.34 | ||
| 3 | Nevada | $5.20 | ||
| 4 | Washington | $5.10 | ||
| 5 | Oregon | $5.06 | ||
| 6 | Alaska | $5.00 | ||
| 7 | District of Columbia | $4.86 | ||
| 8 | Illinois | $4.84 | ||
| 9 | Arizona | $4.81 | ||
| 10 | New York | $4.81 |
California is the most expensive state for the 69th week in a row with Hawaii, Nevada, Washington, Oregon, and Alaska rounding out the top six. Arizona is ninth. Oregon is fifth for the fifth week in a row.
Like the rest of the country, all seven states have week-over-week increases. Alaska (+23 cents) has the largest weekly increase in the region. Hawaii (+4 cents) has the region’s smallest weekly increases.
The refinery utilization rate on the West Coast rose from 79.6% to 82.3% for the week ending May 6. The rate has ranged between about 76% and 90% in the last year.
According to EIA’s latest weekly report, total gas stocks in the region decreased from 30.76 million bbl to 30.20 million bbl.
Oil market dynamics
At the beginning of last week, the price of crude oil decreased due to global market concern that crude demand will suffer as COVID lockdowns in China remain in place. However, crude prices reversed course at the end of the week over growing market worries that Ukrainian and European Union actions against Russian oil and natural gas companies could spark retaliation by Russia, which would lead to more market disruption and uncertainty. Crude prices could fall this week if demand concerns continue to weigh the market down. Additionally, EIA reported that domestic crude supply increased by 8.5 million bbl to 424.2 million bbl. The current level is approximately 12.5 percent lower than during the first week of May 2021.
At the close of Friday’s formal trading session, WTI increased by $4.36 to settle at $110.49/bbl. At Monday’s formal trading session, WTI added $3.71 to close at $114.20. Today crude is trading around $112, compared to $100 a week ago. Crude prices are about $49 more than a year ago.
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 gains two cents to $5.57 a gallon. This is a record high. Oregon’s average adds a nickel to $5.65. This is also a record high. A year ago the national average for diesel was $3.17 and the Oregon average was $3.31.
Find current fuel prices at GasPrices.AAA.com.
AAA: 39 Million Americans, including 530,000 Oregonians to Travel for Memorial Day
2022 Travel Volume Rebounds to 2017 Levels
PORTLAND, Ore., – The unofficial start to summer will be a busy one this year as AAA predicts 39.2 million people (11.8% of the population) will travel 50 miles or more from home this Memorial Day weekend. This is an increase of 8.3% over 2021, bringing travel volumes almost in line with those in 2017.
In the Pacific Region, Region (AK, CA, HI, OR, WA), 6.7 million people (12.5% of the population) are expected to travel, an 8.1% increase compared to 2021. About 530,000 Oregonians will travel over the long weekend. The Memorial Day travel period is defined as Thursday, May 26 through Monday, May 30.
“Memorial Day is always a good predictor of what’s to come for summer travel and based on our projections, this will be an extremely busy season,” says Doreen Loofburrow, Senior Vice President of Travel at AAA Oregon/Idaho. “People are eager to take vacations after staying close to home during the pandemic.”
While most people will drive to their Memorial Day destinations, air travel continues to rebound, up 25% over last year, the second-largest increase since 2010. With travel volumes closing in on pre-pandemic levels, AAA urges travelers to book now and remember flexibility is key this Memorial Day weekend.
“Plan, plan and then plan some more,” adds Loofburrow. “If you haven’t booked your Memorial Day and summer travel yet, do it as soon as possible. Flights, rental cars, accommodations, camping, tours, cruises and other activities are in high demand and availability is filling up. Prices are already skewing higher and with greater demand, finding last-minute deals is unlikely.”
“Be as flexible as possible – look to travel on off-peak times or days, pick a hidden gem closer to home, or opt to stay at an all-inclusive resort with plenty of on-site activities. This limits the need for a rental car and paying a la carte for entertainment and dining,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Travel agents, travel insurance are travel essentials:
AAA recommends working with a travel agent and considering travel insurance options. “A travel agent is an expert on the destinations you’ll be visiting and can help you plan and organize a trip that meets your needs and budget. And if something goes wrong or you need to make last-minute changes, your travel agent becomes your advocate,” says Loofburrow.
AAA strongly recommends travel insurance to cover unexpected delays or trip interruptions. Travel insurance provides a safety net should something unexpected happen ahead of or during your trip. Travel agents can also advise on what travel insurance policy makes the most sense for your trip.
Visit AAA.com/travel or call (800) 529-3222 to reach a AAA travel agent.
Stay safe
While most COVID-19 restrictions have eased, it’s important to keep safety in mind for yourself and others. Find AAA’s latest COVID-19 information for travelers here. Extra precautions can include:
- Traveling with your bubble. This type of travel rose to popularity during the pandemic when many opted to vacation with people they were in close contact with. Consider taking a group trip to divvy up costs for things like activities and accommodations. If everyone is spread out, a travel agent can help manage the logistics.
- When booking a place to stay, look for accommodations that prioritize cleanliness and have implemented additional housekeeping standards since the start of the pandemic. In 2021, AAA enhanced its housekeeping evaluation to include objective, scientific validation of the cleanliness of common surfaces throughout hotels. Hotels that meet these new standards are now recognized as Inspected Clean. Look for this designation or to browse all of AAA’s Diamond properties, click here.
- Everything from airports to restaurants to attractions will be busier this Memorial Day, which means more people congregating. AAA advises travelers to follow CDC guidance, which at this time, is still recommending that people wear masks in indoor public transportation settings (airports, bus/train terminals, public transportation like subways/metros, airplanes, trains and buses).
Top Memorial Day Destinations
AAA booking data reveals that big cities and beaches are the most popular destinations domestically and abroad, based on searches and bookings by members of AAA Oregon/Idaho:
| 2022 Top Memorial Day Destinations for members of AAA Oregon/Idaho | |
| U.S Destinations | International Destinations |
| Orlando, FL | Vancouver, Canada |
| Maui, HI | Dublin, Ireland |
| Anaheim, CA | Paris, France |
| Las Vegas, NV | Rome, Italy |
| Seattle, WA | London, England |
| Denver, CO | Cabo San Lucas, Mexico |
| Honolulu, HI | Amsterdam, Netherlands |
| San Francisco, CA | Barcelona, Spain |
| Salt Lake City, UT | Cancun, Mexico |
| Boston, MA | Calgary, Canada |
Other favorite regional destinations for Memorial Day include the Oregon coast, Central Oregon, and Crater Lake.
