After a few quiet weeks at the pumps, gas prices are springing up, driven by the annual switch to summer-blend fuel which is more expensive to produce. The rising gas prices are seasonal and occur every year. For now, the higher prices have nothing to do with tariffs, but tariffs could return on April 2. For the week, the national average for regular jumps six cents to $3.14 a gallon. The Oregon average climbs three cents to $3.75 a gallon.

“The annual switch to summer-blend gas always puts upward pressure on pump prices. Summer-blend fuel is less likely to evaporate in warmer temperatures and costs more to make,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “Drivers hitting the road for spring break will find gas prices a little higher than last week, but still about 40 cents lower than a year ago.”

The Oregon average began 2025 at $3.45 a gallon and is currently at $3.75. The lowest price of the year so far is just under $3.45 a gallon on January 2, and the highest price of the year so far is $3.77 on February 22.

The national average began 2025 at $3.06 a gallon and is currently at $3.14. The lowest price of the year so far is $3.06 on January 5, and the highest is $3.165 on February 14.

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. 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.

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.

Meanwhile, crude oil production in the U.S. remains near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in this country is holding steady at 13.57 million barrels per day for the week ending March 14. The record high is 13.63 million barrels per day for the week of December 6. Production has been at 13.5 million barrels per day many times since October. The U.S. has been the top producer of crude oil in the world since 2018 and has been increasing its oil production since about 2009.

The U.S. price of crude oil (West Texas Intermediate) has been in the upper $60s to mid-$70s for much of the last three months, but did soar to $80.04 per barrel on January 15, which is the highest price since last August. The lowest closing price since September was $66.03 on March 10.

Crude oil is trading around $69 today compared to $67 a week ago and $82 a year ago. In 2024, West Texas Intermediate ranged between $66 and $87 per barrel. In 2023, WTI ranged between $63 and $95 per barrel. WTI reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.

Crude prices are impacted by economic news as well as geopolitical events around the world including the unrest in the Middle East and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia. Crude prices have been volatile after the attack on Israel by Hamas in October 2023. While Israel and the Palestinian territory are not oil producers, concerns remain that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region. In addition, the production cuts by OPEC+ tightened global crude oil supplies, which continued to impact prices.

Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 58% of what we pay for in a gallon of gasoline is for the price of crude oil, 9% is refining, 16% distribution and marketing, and 17% are taxes, according to the U.S. Energy Information Administration.

Demand for gasoline in the U.S. decreased from 9.18 b/d last week to 8.82 for the week ending March 14, according to the U.S. Energy Information Administration (EIA). This compares to 8.81 million b/d a year ago. Meanwhile, total domestic gasoline supply decreased from 241.1 million barrels to 240.6. Gasoline production increased last week, averaging 9.62 million barrels per day, compared to 9.56 million barrels daily the previous week.

Pump prices will likely rise as more areas produce summer-blend fuel.

Quick stats

Oregon is one of 41 states and the District of Columbia with higher prices now than a week ago. Indiana (+23 cents) has the biggest week-over-week jump in the nation. Maine (-2 cents) has the largest week-over-week decline. The average in Montana is flat.

California ($4.65) has the most expensive gas in the nation for the seventh week in a row. Hawaii ($4.53) is second, and Washington ($4.11) is third. These are the three states in the country with averages at or above $4 a gallon. This week 21 states and the District of Columbia have averages in the $3-range. There are 26 states with an average in the $2 range this week.

The cheapest gas in the nation is in Mississippi ($2.67) and Kentucky ($2.72). No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold. At the time, the COVID-19 pandemic drove significant declines in crude oil and gasoline demand in the U.S. and around the world.

The difference between the most expensive and least expensive states is $1.98 this week, compared to $2.01 a week ago.

Oregon is one of 30 states and the District of Columbia with lower prices now than a month ago. The national average is the same and the Oregon average is two cents less than a month ago. California (-19 cents) has the largest month-over-month drop in the nation. Indiana (+25 cents) has the largest month-over-month increase in the country.

All 50 states and the District of Columbia have lower prices now than a year ago. The national average is 40 cents less and the Oregon average is 45 cents less than a year ago. Alaska (-58 cents) has the largest yearly drop. Colorado (-4 cents) has the smallest.

West Coast

The West Coast region continues to have the most expensive pump prices in the nation with all seven states in the top 10. It’s typical for the West Coast to have six or seven states in the top 10 as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced. In addition, this region is located relatively far from parts of the country where oil drilling, production and refining occurs, so transportation costs are higher. And environmental programs in this region add to the cost of production, storage and distribution.

Diesel

For the week, the national average remains at $3.60 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average ticks up two cents to $3.86. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $4.04 and the Oregon average was $4.21.

Source: AAA

Ty Bailey