Pump Prices Plunge to Lowest Level in Seven Months

Gas prices continue their free fall, with the national average dropping a hefty 32 cents in the past week to $3.16 and Oregon's average plunging 15 cents to $3.34.

Salem-News.com

(PORTLAND, Ore.) - Gas prices are dropping like a rock. The national average for regular unleaded plunges 32 cents this week to $3.16, while Oregon's average drops another 15 cents to $3.34. AAA Oregon Public Affairs Director Marie Dodds says the national average is at its lowest point since February 28th, while Oregon's is the lowest since the first week in March.

Dodds says crude oil is down significantly from the record high of $147 per barrel set July 11th, trading near $80 per barrel today.

"It's reasonable to expect further declines in pump prices. The last time oil was trading at $80 per barrel was in October of last year, and the national average for regular unleaded then was around $2.76 and Oregon's was about $2.86."

The decrease in gas prices could encourage Americans to drive a little more as the Thanksgiving, Christmas, Hanukkah, and New Year's holidays approach. But Dodds believes it ss unlikely that Americans will go back to their gas guzzling ways, even as the national average drops to near $3 a gallon.

"The overall economic situation for many consumers has gotten worse in the last year, and many will continue to conserve gas and limit discretionary spending. At the same time, people who postponed trips over the summer when gas skyrocketed above $4 per gallon may now consider a road trip."

She says it is important for consumers to remember that the drop in prices is due to the struggling economy, and when things improve, it's likely oil and gas prices will rebound.

Despite the lower prices at the pumps, we're still paying about 40 to 50 cents more per gallon than we were a year ago. The national average was $2.76 last year, while Oregon's average was $2.89.

Eugene/Springfield has Oregon's best price in gas for the second week in a row at $3.217. Portland drivers are paying $3.275, and in Salem the average price for a gallon of regular is $3.317.

Motorists in the Medford/Ashland area are paying an average of $3.461. Self-serve regular in Vancouver, Washington is selling for an average of $3.380 per gallon.

Oregon's gas prices are 11th highest in the nation, up from 21st last week. Dodds says, "Our ranking is getting back to normal. Oregon's prices fell to 34th most expensive after Hurricane Ike as prices skyrocketed in states that receive most of their oil from the Gulf Coast. Normally and Washington are among the top 15 most expensive states." Alaska is the only state where regular unleaded is at or above $4 per gallon and has the most expensive gas in the country for the 16th week in a row, followed by Hawaii at $3.97, California at $3.46, North Carolina at $3.45, and Utah at $3.44. Washington is 9th highest at $3.38, up from 13th last week. Oklahoma has the least expensive gas in the country for the third consecutive week at $2.71 per gallon and is one of ten states with regular unleaded under $3 per gallon.

Diesel prices continue to decline. Oregon's average falls 16 cents this week to $3.78, while the national average drops 19 cents to $3.82. Both are at their lowest point since the week of March 10. Hawaii has the highest statewide average price for diesel again this week at $4.99, followed by Alaska at $4.72, District of Columbia at $4.53, New York at $4.25, and Connecticut at $4.02. Oregon's diesel prices are 30th most expensive this week, up from 36th last week. Washington's diesel prices are 34th highest, up from 27th last week. A year ago, the national average for diesel was $3.09 and Oregon's average was $3.31.

Source: Oregon AAA