Gas Prices Rise as Summer Driving Season Approaches

The national average falls a penny to $2.25, while Oregon’s average drops half a cent to $2.37.

(PORTLAND, Ore.) - Gas is slowly moving back up in price. The national average for regular unleaded gains three cents this week to $2.08, while Oregon's adds three-and-a-half cents to $2.26.

Both averages are at new highs for the year, AAA Oregon Public Affairs Director Marie Dodds says, "Even considering this recent uptick, gas and oil prices have remained fairly stable for several weeks. The national average has increased only about four cents in the past month, while the Oregon average is up eight cents. And crude oil has spent much of the spring around $50 per barrel."

Crude oil prices hit a five-month high in trade today at more than $54 per barrel, but prices are expected to retreat this week, after the U.S. Department of Energy is expected to report tomorrow that crude storage levels have reached a 19-year high. Crude gained a few dollars in the past week after some positive economic news that may indicate an increase in international energy demand.

In China, the world's second largest consumer, a government sanctioned economics report picked up signs of increased manufacturing activity. This is generally a good indicator of increasing energy demand, which oil investors took as a sign of an improving global economy.

Ironically, it was a surge in oil and gasoline demand in China, as well as India, that contributed to the record high oil prices last summer when gas prices topped $4 per gallon.

The drop-off in demand for oil and gasoline during the current economic recession had pushed down the price of oil to nearly $30 per barrel over the winter. OPEC responded by aggressively slashing oil production to keep the bottom from falling out of the per barrel price. Gasoline inventories have also grown significantly as Americans are driving less compared to 2008.

Despite the recent increases, pump prices are still well below a year ago when the national average was $3.61 and Oregon's was $3.67.

Oregon's Statewide average for regular is $2.263. Interestingly, Portland and Salem are showing the same current average of $2.234. Drivers in Eugene/Springfield are paying $2.263. Medford/Ashland area prices are $2.337 for regular. Self-serve gas in Vancouver, Washington is selling for $2.301.

AAA reports that 37 states have averages for regular unleaded at or above $2 a gallon this week, up from 33 last week.

The most expensive gas in the country for the 45th week in a row is Alaska at $2.57, followed by Hawaii at $2.49, Washington at $2.37 (up three cents and up from fourth place last week) California at $2.36, and Oregon at $2.26.

This is the fifth week in a row that Oregon is ranked fifth. Arizona replaces Missouri as the state with the least expensive gas with regular unleaded at $1.90 a gallon.

Diesel prices are down slightly. The national average falls a penny to $2.25, while Oregon’s average drops half a cent to $2.37.

Hawaii has the highest statewide average price for diesel again this week at $3.83, followed by Alaska at $3.39, District of Columbia at $2.71, New York at $2.61, and Connecticut at $2.58.

Oregon's average diesel price is 14th most expensive, same as last week. Washington's diesel price holds steady at $2.50 and is sixth highest for the third consecutive week. A year ago, the national average for diesel was $4.24 and Oregon's average was $4.36.

Source: Oregon AAA