Gas Prices Continue to Fall

National Average closes in on $2 a Gallon; Oregon Average at Lowest Point since March 2006.

(PORTLAND, Ore.) - Oregon's gas prices are at their lowest level since March 2006, according to Oregon AAA. The statewide average for regular unleaded drops another 16 cents this week to $2.22. The national average falls another 15 cents to $2.07 and is at its lowest level since March 18, 2005.

AAA Oregon Public Affairs Director Marie Dodds says both averages are about a dollar lower than they were a year ago, and are about 50% lower than the record highs of more than $4 a gallon we set in July."

The national average for diesel also drops below $3 per gallon this week for the first time since September of last year. And Oregon's average for diesel is just above $3 per gallon, also at the lowest point since September 2007.

Crude oil prices are at their lowest level since late January 2007. Crude is trading at about $55 per barrel today, down from around $59 a barrel last week. Crude prices are down about 63% from the record high of $147 per barrel set on July 11, 2008. Investors are concerned about the faltering global economy and a decreasing demand for oil and gas.

AAA expects to see gas prices stabilize and possibly even rise slightly just before Thanksgiving, but a national average of $2 per gallon is still expected over the next few weeks. Despite lower gas prices, consumers face a number of economic challenges and AAA projects a slight drop in the number of Thanksgiving travelers this year. Approximately 41 million Americans will travel 50 miles or more from home this Thanksgiving holiday weekend, a decrease of 1.4 percent from last year’s total of 41.6 million. "This is the first decline in Thanksgiving holiday travel since 2002 and is the fourth consecutive travel holiday this year with a year-to-year decline in the number of travelers," says Dodds.

Salem's average of $2.151 for regular is the best deal in the state, with Portland's cost of $2.169 measuring in as a close second. Drivers in the Eugene/Springfield area are paying an average of $2.233 for a gallon of regular, and the Medford/Ashland region is seeing an average of $2.359. Self serve regular in Vancouver, Washington is selling for an average of $2.247.

The average price of gas is below $2 a gallon in 17 states, up from four last week. Oregon's gas prices are 11th highest in the nation for the third week in a row. This week two states have gas at or above $3 per gallon, same as last week. The most expensive gas in the country for the 21st week in a row is Alaska at $3.15, followed by Hawaii at $3.00, New York at $2.44, California at $2.34 and District of Columbia at $2.32. Washington is 13th highest, up from 14th last week, with its statewide average falling 15 cents to $2.21. Missouri has the least expensive gas in the country for the second week in a row at $1.77.

Diesel prices also continue to drop. Oregon's average drops 16 cents this week to $3.01, while the national average loses 13 cents to $2.96. Hawaii has the highest statewide average price for diesel again this week at $4.58, followed by Alaska at $4.15, New York at $3.47, District of Columbia at $3.47, and Connecticut at $3.34. Oregon's diesel prices are 17th most expensive this week, down from 15th last week. Washington's diesel price is $3.07 which is 14th highest, down from 13th last week. A year ago, the national average for diesel was $3.45 and Oregon's average was $3.59.