When drivers head out on Labor Day getaways this week, they’ll be paying the highest prices ever for gas for the holiday. Crude oil prices remain above $80 per barrel as the conflict with Iran continues. For the week, the national average for regular gasoline holds steady at $4.10 a gallon. The Oregon average jumps 12 cents to $4.89 a gallon.

Labor Day travel promises to be busy and more expensive this year. AAA booking data shows that Alaska cruises, national parks, Central Oregon and the Oregon Coast, Disneyland and Las Vegas are the most popular destinations for members of AAA Oregon/Idaho. Domestic flights, hotels, cruises departing from international cities, U.S. tours, and gas prices cost more than in 2025. Find all the details, graphics, and advice for travelers in the AAA Labor Day travel news release.

The average prices for regular gas in Oregon and Washington (up 10 cents to $5.37 a gallon) are showing larger week-over-week increases than most other states due to dwindling supplies of summer-blend gas, as the switch to winter-blend fuel is underway. The U.S. Environmental Protection Agency issued an emergency waiver, moving up the transition date to September 1. The usual transition date is September 15.

In addition, there are reports of possible operational issues at the Olympic Pipeline. The 400-mile Olympic Pipeline carries refined petroleum products, including gasoline, diesel, and jet fuel, from the refineries in Washington State to distribution terminals in the Pacific Northwest, including Portland. When the pipeline is down, fuel has to travel into Oregon by barge, truck or train, which are less efficient and more expensive than the pipeline. BP, which operates the pipeline, has not commented.

The previous high prices for Labor Day were in 2023, when the national average was $3.81 and the Oregon average was $4.74. Those prices were up slightly from Labor Day 2022.

In 2022, crude oil prices and gas prices were elevated for much of the year, following Russia’s invasion of Ukraine in February. Supply challenges were also an issue, as demand for fuel rebounded significantly after the pandemic and production couldn’t keep up.

In 2023, several factors put upward pressure on pump prices at this time of year, including oil production cuts by Saudi Arabia and other OPEC+ members, low U.S. gasoline inventories, refinery issues due to maintenance and extreme weather, and Hurricane Idalia affecting U.S. Gulf production and pipeline facilities.

The national average for regular gas is at its highest price ever for this time of year. The previous high prices for early September were reached in 2022 and 2023. On this date in 2022 (Sept. 1), the national average was at $3.83, and $3.82 in 2023, compared to $4.10 today. At this point, drivers will likely pay a national average above $4 a gallon on Labor Day, which would be a record high price for the holiday, beating the old high price for the holiday of $3.81 set in 2023.

The Oregon average is also at its highest price ever for this time of year. On this date in 2022 (Sept. 1), Oregon drivers were paying an average price of $4.76, and $4.75 in 2023, compared to $4.89 today.

Crude oil prices have remained above $80 since August 10, driven by the ongoing war with Iran and restrictions on shipping traffic through the Strait of Hormuz. The war between Russia and Ukraine is also pressuring crude prices, as Ukrainian drone strikes have taken a significant amount of Russia’s refining capacity offline.

“Drivers can expect pump prices to remain elevated for this time of year. A little relief may come this month due to the transition to cheaper winter-blend fuel, provided no other supply disruptions occur. But large decreases are unlikely as long as the conflict in the Middle East continues,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.

Gas prices are significantly more expensive than they were before the conflict with Iran began. The National average for regular gas was $2.98 and Oregon average was $3.92 on Feb. 28, the day the U.S. and Israel launched airstrikes against Iran.

Crude oil prices remain volatile, with dramatic swings driven by concerns of how the conflict with Iran impacts global oil supplies. Since the conflict with Iran started, prices for West Texas Intermediate, the U.S. benchmark for crude, have ranged between $68 and nearly $113 per barrel. Crude was at $67 per barrel on Feb. 27, the day before the conflict began.

In general, every $1 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.

Shipping traffic in the Strait of Hormuz remains well below pre-conflict levels of 100 to 130 ships per day. Traffic remains significantly restricted and dangerous due to the ongoing conflict and recent attacks on vessels. Normally, about 20% of the world’s oil and refined products flow through the Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran. Tankers traveling through the Strait of Hormuz carry oil from major producers in the Middle East including Saudi Arabia, Kuwait, Bahrain, UAE, Qatar, Iraq and Iran. Any disruption in the straight can impact global oil supplies and send crude oil prices higher.

The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is $5.353 on May 20. The lowest price of the year so far is $3.33 on January 20. The record high for the Oregon average is $5.548 set on June 15, 2022.

The Washington average for regular gas began 2026 at $3.86 a gallon. The highest price of the year so far is $5.789 on May 20, which is the record high for Washington. The lowest price of the year so far is $3.79 on January 14.

The national average began 2026 at $2.83 a gallon. The highest price of the year so far is $4.564 on May 21. The lowest price of the year so far is $2.795 on January 11. The record high for the national average is $5.016 set on June 14, 2022.

Demand for gasoline in the U.S. gasoline increased from 8.69 million barrels per day to 9.04 million for the week ending August 21. This compares to 9.24 million b/d a year ago. Total domestic gasoline supply decreased from 209.4 million barrels to 206.8 million. Gasoline production increased last week, averaging 9.8 million barrels per day, compared to 9.7 million barrels per day the previous week.

In addition to the conflict in the Middle East, pump prices are also impacted by the normal seasonal factors. 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. 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.

The U.S. price of crude oil (West Texas Intermediate) remains above $80 to start this week. The conflicts in the Middle East, the war between Russia and Ukraine, and market concerns about global oil supplies continue to impact prices. Crude prices fell sharply earlier this summer as markets reacted to the peace deal between the U.S. and Iran. WTI dipped below $70 for several days in late June and early July, the lowest prices since the start of the conflict.

WTI is trading around $89 today, compared to $82 a week ago and $65 a year ago. In 2025, West Texas Intermediate ranged between $80.04 (January 15) and $57.46 (October 16) per barrel. In 2024, WTI 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 determined in international markets, based on global supply and demand, and are impacted by economic news as well as geopolitical events around the world including the conflict with Iran and disruptions in the Strait of Hormuz, economic uncertainty, the situation in Venezuela, tensions over Greenland, sanctions on Iran’s oil, the conflict between Israel and Hamas, and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia.

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 52% of what we pay for in a gallon of gasoline is for the price of crude oil, 22% is refining, 15% distribution and marketing, and 12% are taxes, according to the U.S. Energy Information Administration.

Meanwhile, crude oil production in the U.S. remains at or near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in his country is at 13.84 million barrels per day for the week ending August 21. Production has been at 13.5 million barrels per day many times since October 2024. 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.

Quick stats

Oregon is one of 23 states with higher gas prices this week. New Jersey (+12 cents) has the largest week-over-week jump in the nation. Oregon (+12 cents) has the second-largest, and Washington (+10 cents) has the third-largest week-over-week increase. Ohio (-17 cents) has the largest week-over-week decline.

California ($5.70) has the most expensive gas in the nation for the seventh week in a row. Hawaii ($5.42) is second and Washington ($5.37) is third. These are the three states with averages at or above $5 per gallon. This week there are 22 states and the District of Columbia with averages at or above $4 a gallon, and 25 states have averages in the $3-range. No state has an average in the $2 range this week.

The cheapest gas in the nation is in Indiana ($3.39) and Texas ($3.64). 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 $2.31 this week, compared to $2.13 a week ago.

Oregon is one of 31 states with higher prices now than a month ago. The national average is the same and the Oregon average is 25 cents more than a month ago. Idaho (+29 cents) has the largest month-over-month increase. Ohio (-26 cents) has the biggest month-over-month decline.

All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 90 cents more, while the Oregon average is 91 cents more than one year ago. Wyoming (+$1.25) has the largest year-over-year jump in the nation. . Indiana (+13 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.

As mentioned above, California has the most expensive gas in the country for the seventh consecutive week. Hawaii, Washington, Alaska, Oregon, and Nevada, round out the top six. Arizona is eighth. Oregon moves up a spot to fifth most expensive after seven weeks at sixth.

Six of the seven states in the West Coast region have week-over-week increases: Oregon (+12 cents), Washington (+10 cents), California (+8 cents), Alaska (+6 cents), Nevada (+4 cents), and Hawaii (+1 cent). The average in Arizona is flat.

The refinery utilization rate on the West Coast increased from 92.2% to 93.7% for the week ending August 21. This rate has ranged between about 71% to 94% in the last year. The latest national refinery utilization rate rose from 97.2 to 97.4%.

The refinery utilization rate measures how much crude oil refineries are processing as a percentage of their maximum capacity. A low or declining rate can put upward pressure on pump prices, while a high or rising rate can put downward pressure on pump prices.

According to EIA’s latest weekly report, total gas stocks in the region decreased from 28.11 million bbl. to 27.62 million bbl. for the week ending August 21. An increase in gasoline stocks can put downward pressure on pump prices, while a decrease in gasoline stocks can put upward pressure on pump prices.

Oil market dynamics

Crude oil prices have moved higher to start this week, as renewed fighting between the U.S. and Iran renews global supply concerns. Expect oil prices to continue to be volatile, depending on developments in the Middle East, as well as impacts of Ukrainian drone attacks on Russian refineries.

At the close of Friday’s formal trading session on the NYMEX, WTI slipped 13 cents to settle at $83.40. At the close of Monday’s formal trading session on the NYMEX, WTI jumped $2.36 to settle at $85.76. Today WTI is trading around $89, compared to $82 a week ago. Crude prices are about $24 more than a year ago. ($65.59 on Sept. 2, 2025)

Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Diesel

Diesel prices are higher in 25 states and the District of Columbia this week. Oregon (+21 cents) has the largest week-over-week jump. Michigan (-9 cents) has the biggest week-over-week decline.

For the week, the national average adds one 1 cent to $5.63 a gallon, and is now only about 19 cents lower than the all-time record high of $5.816 set on June 19, 2022.

The Oregon average soars 21 cents to $5.88. The record high is $6.47 set on July 3, 2022.

A year ago the national average for diesel was $3.69 and the Oregon average was $4.46.

Source: AAA

Local News