AAA Says Gas Prices Decline to Lowest Level in 11 Weeks

Good news for consumers as they fill up their gas tanks. The national and Oregon averages continue to fall and prices haven't been this low since late May. The price of crude oil is also $27 lower than the record high of $147 set in July.

Salem-News.com

(PORTLAND, Ore.) - "It's costing us less to fill up our tanks. Gas prices continue to fall and haven't been this low since late May. The national average drops seven cents this week to $3.87 a gallon, while Oregon's average declines eight cents to $4.06."

AAA Oregon Public Affairs Director Marie Dodds says, "If the price of crude oil remains below $125 per barrel, we could see a national average around $3.75 by Labor Day. Larger declines will be in the works if oil prices plunge even lower than they are now."

Oil is trading today around $120 per barrel, down about $27 from the all-time high price of $147 per barrel set on July 11. The drop in energy prices is mostly due to shrinking demand for petroleum products in the U.S. and other countries as global economies have cooled. As positive as the news is concerning falling gasoline prices, it is important for consumers to remember that the drop in fuel costs is mainly due to slower economic growth and that a rebounding economy later this year or next will increase demand for petroleum products and likely mean the return of higher gas prices. It also is possible for oil exporting nations to trim output if they feel the price of oil has moved too low, thus keeping prices closer to current levels.

Prices at the pumps continue to be much higher than they were a year ago. The national average was $2.84 last year, while Oregon's average was $2.87.

Portland has Oregon’s lowest average for gas, at $3.962 . Salem drivers are paying $4.029 for regular, and Eugene/Springfield are paying an average of $4.075. Medford/Ashland’s average price for a gallon of gasoline is $4.196. Vancouver, Washington residents are paying an average of $4.021 for self serve regular.

Oregon's gas prices are 10th highest in the nation for the second week in a row. Alaska has the most expensive gas in the country for the sixth week in a row at $4.65 a gallon, followed by Hawaii at $4.47, California at $4.20, Utah at $4.16 and New York at $4.15. Washington is sixth highest at $4.13. Oklahoma has the least expensive gas in the country this week at $3.61 per gallon. Oregon and Washington are among 12 states, including the District of Columbia, with averages for regular unleaded at or above $4 per gallon, down from 34 states a couple weeks ago.

Diesel prices are also at their lowest level since late May. The national average drops eight cents to $4.64 this week, while Oregon's average loses seven cents to $4.73. Diesel averages are above $5 per gallon in two states this week, down from five states a couple weeks ago. Hawaii has the highest statewide average price for diesel again this week at $5.38, followed by Alaska at $5.25, New York at $4.99, District of Columbia at $4.90, and Connecticut at $4.88. Oregon's diesel prices are 14th most expensive and Washington's are 8th. A year ago the national average for diesel was $2.96 and Oregon's average was $3.07.

Source: AAA Oregon