Oregon Gasoline Prices Soar; Average Price Up 22 Cents Since End of February

Drivers need to remember that the station attendant did not cause the gas prices to go up, they do not deserve to be hassled over world level issues Salem-News.com

(SALEM) - For a brief time, Portland was said to have the lowest average gasoline price in the nation at $2.02. That was two weeks and 27-cents ago. In the past week alone, Oregonians have watched the statewide average price for a gallon of regular shoot up 14-cents to $2.36. At the same time, the national average gained a nickel to $2.36, the highest since November 9th, 2005. Salem`s average price for a gallon of gas is $2.26.

"The bottom line is we're approaching the peak driving season when fuel demand is highest, retailers are transitioning to the more expensive summer fuel grades and crude oil continues to trade at more than $60 per barrel," said AAA Oregon Public Affairs Director Elliott Eki.

Additionally, global events are causing some worry that the flow of Middle Eastern oil might be disrupted. What action is taken regarding the Iran nuclear issue could drive crude oil prices significantly up or down, along with gasoline prices. For now, the big question remains, how much higher will gasoline prices go?

Some analysts attribute the current higher prices to the high cost of crude oil and to tight fuel inventories caused in part by reduced production as refineries undergo seasonal maintenance. U.S. gasoline inventories, however, are reportedly at about the same level as a year ago when the national average gasoline price was $2.03 per gallon and crude oil was trading at $55 per barrel. One forecast expects average gasoline prices to hit pre-Katrina levels by Easter. If that occurs, by mid-April, the national average will be about $2.60 and the Oregon average will be pushing $2.65. Rogue Valley motorists would see prices in the neighborhood of $2.80 per gallon—30-cents higher than the current average price. All this, of course, remains to be seen and making an accurate prediction is near impossible.

Another factor influencing fuel prices is the strength of the U.S. economy. If summer demand for gasoline cools, so will fuel prices. Likewise, if consumer confidence strengthens, fuel demand probably will go up and so will gas prices.

At $2.36, Oregon's average gasoline price is 22nd highest in the nation. Hawaii has the highest statewide average price at $2.73. California's average price is up to $2.57; Nevada's is $2.45; Washington's went up 9 cents to $2.38; and Idaho's inched upward to $2.32. New Jersey, the only other full-service state, has the lowest average price at $2.16. The national average diesel price now stands at $2.62 per gallon. In Washington, the diesel average rose to $2.89. In California, it's $2.88; in Nevada, it held steady at $2.71; in Idaho, it's $2.68, and in Oregon, it went up 9 cents to $2.81.