State, National Average Fuel Prices Continue Decline

Prices continue to fall even as we approach Labor Day.

Photo by: Bonnie King

(PORTLAND, Ore.) - Although the price of crude oil remains above $70 per barrel, Americans are enjoying a continued decline in fuel prices. In the past week, the national average price for a gallon of regular gasoline fell more than six cents to $2.77; Oregon's statewide average also lost six cents, down to $2.79, the lowest it's been since March 15th.

Portland is again the place where Oregonians are buying their cheapest gallon of regular, with a price of $2.732. Salem is slightly behind with a cost of $2.738.

Medford/Ashland prices are generally higher than the rest of the state, but today’s price of 2.759 beats the pants off of the price of regular in the Eugene/Springfield area; where drivers are paying $2.783. Vancouver, Washington residents are paying $2.818 for a gallon of self-serve regular.

"The continuing decline in pump prices is good news for motorists, but they should keep circumstances in perspective," said AAA Public Affairs Director Elliott Eki. "Refineries are selling off summer grade fuels in advance of the conversion to winter blends, and that's holding prices down. But, we're now approaching Labor Day, the last holiday of the summer, so demand and prices likely will move upward as families hit the road for their last getaway before the new school year."

Because of high oil prices and other global considerations, it's difficult to forecast where fuel prices will settle in September and for the remainder of the year. Domestic fuel availability is still vulnerable to potential disruptions resulting from severe weather in the Gulf Coast Region and mechanical problems which could occur as refineries transition from summer to winter fuel production. Once these hurdles are crossed, the energy picture should come into better focus.

At $2.79, Oregon's average gasoline price ranks 24th highest in the nation. Hawaii has the highest statewide average price at $3.26; in the contiguous U.S., New York is highest at $3.01, and South Carolina is lowest at $2.56.

California's statewide average price dropped eight cents to $2.93, and Washington's is down to $2.87. Idaho's average price fell to $2.91, and Nevada's is down to $2.84. The national average diesel price backed off to $2.93 per gallon. In California, diesel averages $3.17 per gallon; in Washington it's down to $3.16, in Idaho it's $3.06, and in Nevada it's $3.04. Oregon's average diesel price dropped three cents to $3.05.

Elliot Eki with Oregon AAA says drivers shouldn't forget that oil hit a record high recently and remains above $70 per barrel. He says we'll ultimately pay for that.