National/Oregon Average Gasoline Prices Falling

National average gasoline price still sliding downward at a fairly good clip; Oregon's decline is much slower...but at least heading lower.

(SALEM) - Since last week, the national average price for a gallon of regular gasoline dropped another 8-cents to $2.84. In Oregon, the decline was less dramatic—about 2-cents per gallon to $3.01.

Salem’s average of $2.96 is above Portland’s cost of $2.94 for a gallon of regular. Eugene residents are paying $3.01 and Medford drivers are seeing an average of $3.07. In Vancouver, Washington, regular is going for an average of $2.98.

Adding to a reasonably strong national inventory of gasoline, other favorable factors are pushing pump prices lower. The Israeli-Hezbollah cease fire agreement remains in effect; Tropical Storm Ernesto, which still could regain hurricane strength, is not expected to deliver another knock-out punch to Gulf Coast oil refineries and installations; and, fuel demand is down as the summer travel season comes to an end. "The West Coast is feeling the effect of the BP pipeline problems in Alaska, and how long it will take for repairs to be completed is still a big question," said AAA Oregon Public Affairs Director Elliott Eki. "But, as the rest of the nation, the West Coast should expect pump prices to decline even further once the Labor Day holiday passes, and we could soon see the end of $3 per gallon gasoline." Currently, only 11 states and the District of Columbia have average prices higher than $3; earlier this month, 26 states and the District of Columbia had average prices in excess of $3. Labor Day travel is projected to increase by slightly more than one percent over 2005 because of the lingering high cost of fuel and the fact that many schools systems already are in session.

Auto travel is expected to increase this holiday weekend, but the number of vacationers going by air, train or bus is expected to be less than a year ago.

At $3.01, Oregon’s average gasoline price climbs to11th highest in the nation. Hawaii has the highest statewide average price at $3.33. California’s is down to $3.11; Nevada’s and Washington's fell to $3.04; and Idaho’s held steady at $3.02. Ohio has the lowest statewide average price at $2.60.

The national average price for a gallon of diesel dropped by a penny to $3.09. Idaho's statewide average diesel price is highest in the nation at $3.56. Washington's is $3.52, California's is $3.32, Nevada's is $3.30, and Oregon's is $3.41.