Higher Gas Won't Curb Memorial Weekend Travelers in Oregon

Oregon's average price went up in the past week, but since Monday, the average has dropped a tenth of a cent. Not much of a drop but, perhaps, a good sign of things of come.

(SALEM, Ore.) - As previously forecast, the national average price for a gallon of regular gasoline hit a new all-time high at $3.09, up more than a nickel in the past week. During the same time period, 19 states set record highs. Oregon's statewide average price went up by less than two cents a gallon to $3.41, and actually lost a tenth of a cent per gallon overnight Monday. "Average prices in the state's four measured metropolitan areas went up in the past week, but not as rapidly as in previous weeks," said AAA Public Affairs Director Elliott Eki.

"The past 24 hours offers some optimism; average prices in Eugene and Salem actually fell off ever so slightly. The overnight decline was not a very significant amount, but it was the first time in several weeks that we've seen prices moving downward."

According to analysts at the Oil Price Information Service, which provides fuel pricing data to AAA, refinery issues in the Midwest are causing pump prices to rise in those regions as demand outstrips production.

OPIS analyst Tom Kloza believes Pacific Coast states will see prices falling soon. Wholesale prices in this region, he notes, have retreated by as much as 20-cents per gallon.

With the Memorial Day holiday less than two weeks away, travel volume is projected to be up slightly over a year ago. Of all travelers, 84%, or more than 32-million, will travel by motor vehicle, indicating that higher pump prices and vacation costs will not curb fuel demand.

At $3.41, Oregon's average gasoline price ranks 3rd highest in the nation. California has the highest average price at $3.48, followed by Washington at $3.43. Hawaii's statewide average is $3.35; Nevada's is $3.25 and Idaho's moved up to $3.19. South Carolina has the lowest statewide average price at $2.84. The national average diesel price dipped to $2.90 per gallon in the past week; California's is $3.14; Washington's fell to $3.07; Idaho's dropped to $3.04 and Nevada's dipped to $3.03. Oregon's average diesel price inched down to $2.94.

In spite of high gasoline prices and increasing vacation costs, AAA expects Memorial Day travel to be up slightly from a year ago. AAA estimates 38.3 million Americans will travel 50 miles or more from home this holiday, a 1.7 percent increase. Of them, approximately 32.1 million travelers (84 percent) expect to go by motor vehicle, a 1.8 percent increase from the 31.5 million who drove a year ago. Another 4.4 million (11 percent) plan to travel by airplane, a 1.0 percent increase, and a projected 1.9 million (5 percent) will travel by train, bus, or other transportation mode, about even with a year ago.

“Americans won't be deterred from traveling this Memorial Day,” said AAA Oregon/Idaho Travel Services Director Doreen Loofburrow. “Families will travel closer to home, they will travel for fewer days, and they will save money by staying in less expensive hotels and eating in cheaper restaurants, but they will continue to take vacations and plan getaways.”

Holiday auto travelers will find regular gasoline currently averaging $3.09 per gallon nationwide. The current Pacific Coast states average, including Oregon, Washington and California, is $3.44 per gallon.

Air travelers will get a bit of a break. AAA’s Leisure Travel Index shows flights will average $166, about 5 percent less than last year. Car rental rates are expected to fall 16 percent, with daily rates averaging $31, almost $6 less than last year. Hotel rates, however, will be up about 13 percent from a year ago, averaging $174 per night at AAA 3-Diamond hotels. On average, a family of four traveling this Memorial Day Weekend will spend $594.

The greatest number of Memorial Day auto travelers will originate in the West with 7.6 million, followed by the Southeast with 6.9 million; Midwest, 6.8 million; Northeast, 6.0 million; and Great Lakes, 4.8 million.

The West also is expected to produce the largest number of air travelers with 1.4 million, followed by the Midwest with 1.2 million; Southeast, 900,000; Northeast, 500,000; and Great Lakes, 400,000.

AAA’s travel agents continue to see increased interest in summer travel compared to a year ago, especially in international travel. Cruise sales for AAA travel agencies are up 4.7 percent, AAA online bookings have increased 35 percent and sales of trip insurance are up 4 percent compared to the same period last year.

Research for Memorial Day travel is based on a national survey of 2,000 adults by the Travel Industry Association of American, which conducts special research for AAA.