The Oregon average for a gallon of regular gas is back below $4 a gallon for the first time since early September when the Olympic Pipeline went out of service. While drivers here are paying less for gas, the national average rose a few cents in the past week before falling again, after a refinery fire in the Midwest caused prices in that region to jump. For the week, the national average for regular slips half a cent to $3.04 a gallon. The Oregon average tumbles eight cents to $3.94 a gallon. Oregon has the third-largest week-over-week drop for a state in the nation.

“The Oregon average for regular gas dipped below the $4 mark on October 22 for the first time since September 5. Gas prices in Oregon and Washington soared last month after an outage on the Olympic Pipeline, which brings fuel to Oregon from refineries in Washington State. Gas prices in this region have steadily declined since the pipeline reopened, and drivers should continue to get relief at the pumps, barring unforeseen events,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.

The Oregon average for regular gas began 2025 at $3.45 a gallon and is currently at $3.94. The highest price of the year so far is $4.297 on September 13 and 14. The lowest price of the year so far is just under $3.45 a gallon on January 2.

The national average began 2025 at $3.06 a gallon and is currently at $3.04. The highest price of the year so far is $3.268 on April 4. The lowest price of the year so far is $3.036 on October 19 and 20.

This week 12 Oregon counties have averages at or above $4, compared to 16 a week ago:

Demand for gasoline in the U.S. gasoline demand remained flat at 8.45 million b/d for the week ending October 17. This compares to 8.84 million b/d a year ago. Total domestic gasoline supply decreased from 218.8 million barrels to 216.7 million. Gasoline production increased last week, averaging 9.6 million barrels per day compared to 9.4 million barrels per day the previous week.

Gas prices usually drop in the fall, due to the switch from summer-blend to winter-blend fuel, which costs less to produce. The switch starts in September. Many areas, including Oregon, can sell winter-blend fuel starting September 15. However, Northern and Southern California require summer-blend fuel through October 31. Prices usually decline to their lowest levels of the year in late fall and early winter before increasing again in the late winter and early spring.

Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel, which is more expensive to produce and less likely to evaporate in warmer temperatures. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to switch to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend until June 1. Switch-over dates are earlier in California with some areas in the state requiring summer-blend fuel by April 1. Some refineries will begin maintenance and the switchover in February.

The U.S. price of crude oil (West Texas Intermediate) rose above $60 on October 23 for the first time since October 10 and has remained above $60 since then. Crude oil prices rose after President Trump imposed additional sanctions on Russian oil. In addition, this week’s trade talks between the U.S. and China is putting upward pressure on oil prices, offsetting some of the market concerns of a slowing global economy.

WTI has been mostly in the low-$60s to mid-$70s since September 2024. Crude prices spiked to the mid-$70s in mid-June in response to the strikes between Israel and Iran, and then the U.S. strike on Iran’s nuclear facilities, but then prices fell back into the $60s on the belief that the conflict would not have a major impact on global oil supplies. Crude prices fell in early April as markets reacted to President Trumps tariffs and the impact on U.S. and global markets. Additional downward pressure on crude prices came after the decision by OPEC+ to increase production. The lowest closing price since September was $57.13 on May 5, which was the lowest closing price since February 2021. The recent high price for crude was $80.04 per barrel on January 15, which was the highest price since last August 2024.