Gas Prices Back Off Slightly for Spring Break

Gas prices often climb during Spring Break, but both the national and Oregon averages are down slightly this week, dropping a few cents from last week's record highs.

Salem-News.com

(PORTLAND, Ore.) - "Gas prices are coming down a few cents from the record highs we set in the past week." AAA Oregon Public Affairs Director Marie Dodds says, "Even though it's spring break, a time when prices normally rise, the Oregon average for regular unleaded is down three cents this week to $3.43.

The national average also drops three cents to $3.26. The Oregon and national averages are both below their record highs of $3.462 for Oregon set on March 17th, and $3.285 for the national average set on March 16th.

Crude oil prices are around $100 per barrel today, dropping significantly after reaching a record high of $111.80 last week on the New York Mercantile Exchange.

The decrease may reflect a growing realization by traders that consumers in the U.S. have cut their fuel use due to high prices and a weakening economy and that they will likely continue to do so.

At the same time, the wholesale price of gas isn't dropping as dramatically as the price of crude. This is because wholesale gas prices had not kept up with the increase in crude oil in the past few weeks.

The wholesale price of reformulated gas is near $2.60 per gallon, down from $2.65 last week. Add 60 cents for taxes, distribution, station overhead and profits, and the average retail price is $3.20, close to the current national average.

Gas prices continue to be much higher than they were a year ago. The national average was $2.58 last year, while Oregon's average was $2.86.

Salem’s average of $3.384 for regular is the cheapest in Oregon this week, followed by Portland where drivers are paying an average of $3.405 a gallon. Drivers in the Eugene/Springfield are paying an average of $3.468 at the pumps, while Medford/Ashland area motorists are seeing $3.494as an average price for regular. Self serve regular in Vancouver, Washington is going for $3.476 a gallon.

Oregon's gas prices are fifth highest in the nation for the second week in a row. California has the most expensive gas in the country at $3.624 a gallon, followed by Hawaii at $3.620, Alaska at $3.494, Washington at $3.493, and Oregon. Missouri has the least expensive gas in the country this week at $3.04 per gallon.

Diesel prices have also dropped slightly from record highs. The national average increases a cent this week to $4.026, while Oregon's average goes up nearly two cents to $3.967. The national record high for diesel is $4.037, set on March 23rd, while Oregon's record is $3.997 set on March 21st. A year ago the national average for diesel was $2.75 and Oregon's average was $2.78.

New York has the highest statewide average price for diesel again this week at $4.34, followed by Pennsylvania at $4.25 and Connecticut at $4.24. Oregon's diesel prices are the 32nd most expensive for the second week in a row.

Source: Oregon AAA