National Gas Prices Inch Down Below $3 per Gallon

The price of gas should remain stable for the holidays.

Photo by: Bonnie King

(PORTLAND, Ore.) - "Gas prices continue to inch down." AAA Oregon Public Affairs Director Marie Dodds says, "The national average drops five cents this week and is below $3 per gallon for the first time since November 4th.

Oregon's statewide average is down four cents to $3.07 per gallon. Gas prices peaked in mid-November as the price of crude oil approached $100 per barrel, compared with about $89 per barrel today. OPEC's decision last week not to raise production did not cause prices to increase because crude oil and gas inventories are healthy, and demand has been flattening out.

Barring any significant world events or major storms, the price of gas is expected to remain stable during the holidays."

Nationally we're paying 70 cents more per gallon at the pumps than a year ago, and in Oregon 44 cents more. The price of oil and gasoline is linked not only to the price of crude, but also to the condition of world financial markets and the value of the dollar. The U.S. government put a temporary freeze on some subprime mortgages, which stopped the sliding value of the dollar against other currencies for now. This is important because crude oil is priced and sold in dollars.

Story continues below

Gas prices this week are down in all four of Oregon's measured metropolitan areas, and in Vancouver, WA. In Vancouver, Salem and Eugene/Springfield, prices are down five cents. And in Portland and Medford/Ashland, prices are down four cents this week.

Portland drivers are seeing the lowest prices in the state, with an average cost of $3.034 for regular. Salem is next with an average of $3.035. Motorists in the Eugene/Springfield area are paying an average of $3.067 per gallon. The Medford/Ashland average for regular is $3.159. Drivers in Vancouver, Washington are paying an average of $3.150 for self-serve regular.

Oregon's gas prices are now tied with Utah for 14th highest in the nation, up from 15th-highest last week. Hawaii continues to have the most expensive gas in the country at $3.433, followed by California at $3.331, New York at $3.274, Alaska at $3.237 and Connecticut at $3.226. Missouri again has the least expensive gas in the country this week at $2.762 per gallon.

The price of diesel is also creeping down. In the past week, Oregon's average diesel price has declined six cents to $3.484 per gallon, compared to $2.982 a year ago. The national average for diesel is down five cents this week to $3.428 compared with $2.702 last year. Hawaii has the highest statewide average price for diesel at $3.925.