While gas prices in Oregon continue to decline, prices in many other states and the national average are climbing. Refinery issues in the West Coast and the Midwest regions and a drop in U.S. supplies of gasoline are putting upward pressure on prices in many areas. In Oregon, however, prices continue to ease, with the Oregon average down to its cheapest price since late March. For the week, the national average for regular adds two cents to $3.07 a gallon. The Oregon average loses five cents to $3.82 a gallon. Oregon has the largest week-over-week decline and biggest month-over-month drop for a state in the nation.
“For now, Oregon drivers continue to see gas prices decline. The Oregon average is at its lowest price in eight months,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “But the upcoming Thanksgiving travel period could put upward pressure on pump prices due to significant demand. With uncertainty surrounding flying, many travelers may choose to drive instead.”
While drivers in Oregon and Washington are seeing pump prices decline, California, Nevada and Arizona continue to see prices rise due to planned and unplanned refinery issues. A fire and explosion at the HF Sinclair Navajo Refinery in Artesia, New Mexico on Oct. 31 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 increases in wholesale gas prices which are then passed on to consumers.
In addition, upcoming closures of refineries in California may impact prices in that state and other states in the West Coast region. Phillips 66 announced last year that it would be closing its 139,000-barrel-per-day refinery in Los Angeles 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. Also, Valero plans to close its Benicia refinery in the Bay Area by April 2026. This facility produces about 145,000 barrels of gasoline and diesel per day.
The Oregon average for regular gas began 2025 at $3.45 a gallon and is currently at $3.82. 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 $3.07. 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 four Oregon counties have averages at or above $4, compared to five a week ago:
Demand for gasoline in the U.S. gasoline demand decreased from 8.92 million b/d to 8.87 million for the week ending October 31. This compares to 8.83 million b/d a year ago. Total domestic gasoline supply decreased from 210.7 million barrels to 206 million. Gasoline production increased last week, averaging 9.8 million barrels per day compared to 9.6 million 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.