Oregon Average Gas Price Still Among Nation's Highest, But Breaks Through the $2.50/Gallon Barrier

Oregon’s statewide average is below $2.50, and even Medford-Ashland average price is below that threshold. Expect prices to continue to fall as Thanksgiving approaches.

Photo courtesy: travelgolf.com

(SALEM) - Oregon's statewide average price for a gallon of regular gasoline finally fell below the $2.50 mark, and now stands at $2.48, down more than 6-cents during the past week. The decline has slowed somewhat for the national average price which is currently $2.20.

The week's most notable price reduction in Oregon's four measured metropolitan areas came in Medford-Ashland where the average price fell by almost ten-cents per gallon.

Eugene/Springfield continues to see the lowest prices in the state, with drivers paying an average of just $2.39 per gallon for regular. Salem drivers are seeing an average of $2.43 while Portland motorists are paying a penny more per average. Medford/Ashland area prices for regular are averaging around $2.45 and Vancouver, Washington residents are paying an average price of $2.44 for a gallon of regular. Only last week, OPEC ministers agreed to cut oil production by 1.2 million barrels per day, expecting to push the price of crude above the $60 per barrel threshold again. So far, that strategy hasn't worked and the price of crude remains in the $58-$59 range.

Energy analysts say the continued price decline is due, in part, to oil and gasoline inventories that strengthened in recent months. In addition, U.S. gasoline imports have been strong as other nations take advantage of robust profit margins. Less consumer demand and increased use of ethanol, which displaces gasoline, also contribute to the rise in available fuel supplies. What all this suggests is that motorists should expect prices to continue to fall as the Thanksgiving holiday approaches. Since early spring, analysts at the Oil Price Information Service, which compiles AAA's daily fuel gauge report, said average gasoline prices could fall by as much as 50-75 cents per gallon once they peaked then begin to level off in late November and remain flat until the Spring and Summer driving seasons arrive. Since Oregon's average price hit $3.11 in late May, it's gone down 63-cents per gallon.

At $2.48, Oregon's statewide average price ties Idaho's for 5th highest in the nation. Hawaii has the highest average price at $2.93, followed by Alaska at $2.66, Nevada at $2.50, and Washington at $2.52. California's statewide average dipped to $2.48. South Carolina and New Jersey, the only other state that prohibits self-service, have the lowest statewide average price at $2.05.

Diesel pricing activity was mixed this week, as the national average price rose to $2.61 per gallon. As Idaho's average diesel price went up a nickel to $2.71, Washington's dropped a penny to $2.73, California's fell to $2.79, Nevada's dipped to $2.71 and Oregon's lost another 4-cents to $2.64.

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