The Oregon average for a gallon of regular gas is down to its cheapest price since April, while the national average remains close to the $3 mark. However, Arizona and California are seeing pump prices rise, due to refinery issues. For the week, the national average for regular gains one cent to $3.05 a gallon. The Oregon average loses six cents to $3.87 a gallon. Oregon has the second-largest week-over-week decline and biggest month-over-month drop for a state in the nation.
“It’s another week of savings for Oregon drivers as pump prices here continue to decline. The Oregon average as it its cheapest price since April of this year,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
While drivers in Oregon and Washington are seeing pump prices decline, California, Arizona and Nevada are seeing week-over-week increases due to refinery issues. A fire and explosion at the HF Sinclair Navajo Refinery in Artesia, New Mexico on Friday injured three people. The facility has a crude oil capacity of 100,000 barrels per day and serves markets in the southwestern U.S. including New Mexico, Arizona, and West Texas. In California, some planned and unplanned refinery maintenance has led to increase in wholesale gas prices which are then passed on to consumers.
In addition, the upcoming closure of the Phillips 66 refinery in Los Angeles may impact prices in California and other West Coast states. Phillips 66 announced last year that it would be closing the 139,000-barrel-per-day facility by the end of 2025 due to weak refining margins, high crude oil acquisition costs, and increased competition from renewable diesel. The refinery is nearly 100 years old and is expensive to maintain and operate. Phillips 66 says it plans to continue to supply fuel to Southern California from other sources.
The Oregon average for regular gas began 2025 at $3.45 a gallon and is currently at $3.87. 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 $3.05. 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 five Oregon counties have averages at or above $4, compared to 12 a week ago:
Demand for gasoline in the U.S. gasoline demand increased from 8.45 million b/d to 8.92 million b/d for the week ending October 24. This compares to 9.16 million b/d a year ago. Total domestic gasoline supply decreased from 216.7 million barrels to 210.7 million. Gasoline production is about the same as the previous week, averaging 9.6 million barrels per day.
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.