PORTLAND, Ore., – Surging gas prices on the West Coast are easing for now as refineries come back online in the region. Most states, including Oregon, are seeing the average price of gas change by a nickel or less this week. However, the relief won’t last too long as the switch to summer-blend fuel will put additional upward pressure on pump prices. For the week, the national average for regular slips two cents to $3.14 a gallon. The Oregon average holds steady at $3.77 a gallon.
Refinery maintenance and outages in California were the driver of soaring pump prices on the West Coast. The refinery at Martinez, CA in the Bay Area was shut down after a fire and explosion on Feb. 1. In addition, other refineries in California have been undergoing maintenance and repairs ahead of the annual switch to summer-blend fuel.
“The crimp in gasoline supplies sent wholesale prices soaring in the region, and those increases were passed on to consumers in California, Oregon, Washington, Nevada and Arizona,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “This is the time of year that we normally see increases at the pumps, but prices soared early this year as the refinery situation in California impacted other West Coast states.”
The Oregon average began 2025 at $3.45 a gallon and is currently at $3.77. 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 ticked up from 13.494 to 13.497 million barrels per day for the week ending February 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.
Crude oil is trading around $69 today compared to $72 a week ago and $78 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, production cuts by OPEC+ have tightened global crude oil supplies, which will continue to impact prices. The cartel has said it would start monthly production increases on April 1 but could still decide to postpone any hike in oil output.
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 56% of what we pay for in a gallon of gasoline is for the price of crude oil, 8% is refining, 20% distribution and marketing, and 17% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. decreased from 8.57 million b/d last week to 8.23 million b/d for the week ending February 14, according to the U.S. Energy Information Administration (EIA). This compares to 8.20 million b/d a year ago. Meanwhile, total domestic gasoline fell from 248.1 million barrels to 247.9, while gasoline production decreased last week, averaging 9.2 million barrels per day compared to 9.3 million barrels daily the previous week.
Pump prices may be steady in the short term, but will rise due to the normal seasonal factors as the shift to summer-blend fuel occurs.
Quick stats
Oregon is one of 43 states and the District of Columbia where the average price of gas has changed by a nickel or less in the past week. Ohio (-12 cents) has the largest week-over-week drop in the nation. North Dakota (+2 cents) has the largest week-over-week increase.
California ($4.83) has the most expensive gas in the nation for the 3rd week in a row. Hawaii ($4.55) is second, and Washington ($4.16) is third. These are the three states in the country with averages at or above $4 a gallon. This week 24 states and the District of Columbia have averages in the $3-range. There are 23 states with an average in the $2 range this week.
The cheapest gas in the nation is in Mississippi ($2.67) and Texas ($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 $2.16 this week, compared to $2.17 a week ago.
Oregon is one of 24 states with higher prices now than a month ago. The national average is one cent more and the Oregon average is 22 cents more than a month ago. This is the third-largest monthly increase in the country. California (+38 cents) and Arizona (+25 cents) have the largest month-over-month increases in the country, due to the California refinery issues. Delaware (-29 cents) has the largest month-over-month drop in the nation.
Oregon is one of nine states with higher prices now than a year ago. The national average is 12 cents less and the Oregon average is three cents more than a year ago. Ohio (-31 cents) has the largest yearly drop. California (+19 cents) has the largest year-over-year increase.
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.
| Rank | Region | Price on 2/25/2025 |
| 1 | California | $4.83 |
| 2 | Hawaii | $4.55 |
| 3 | Washington | $4.16 |
| 4 | Nevada | $3.86 |
| 5 | Oregon | $3.77 |
| 6 | Alaska | $3.46 |
| 7 | Arizona | $3.41 |
| 8 | Pennsylvania | $3.35 |
| 9 | Illinois | $3.26 |
| 10 | District of Columbia | $3.25 |
As mentioned above, California has the most expensive gas in the country for the 3rd week in a row. Hawaii, Washington, Nevada, Oregon, Alaska, and Arizona round out the top seven. Oregon is fifth for the 21st week in a row.
All seven states in the West Coast region have tiny changes in gas prices on the week. Nevada (-3 cents), Arizona (-2 cents), California (-2 cents), and Oregon (-2/10ths of a cent) have small decreases. Alaska (+1 cent), Hawaii (+1 cent), and Washington (+1 cent) have small week-over-week increases.
The refinery utilization rate on the West Coast jumped from 81.2% to 85.8% for the week ending February 14. This rate has ranged between about 74% to 92% in the last year. The latest national refinery utilization rate edged down from 85.0% to 84.9%.
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 ticked down from 28.77 million bbl. to 28.59 million bbl.
An increase in the refinery utilization rate and/or a high rate can put downward pressure on pump prices, and an decrease in gasoline stocks can put upward pressure on pump prices.
Oil market dynamics
Crude oil prices rose slightly to start this week but are lower today, in part on concerns about the economy in the U.S., Germany and China. At the same time, investors consider discussions to end the war in Ukraine and a potential increase in global oil supplies from Iraq – these factors could put downward pressure on crude oil prices.
At the close of Friday’s formal trading session, WTI fell $2.17 to settle at $70.40. At the close of Monday’s formal trading session, WTI added 30 cents to close at $70.70. Today crude is trading around $69 compared to $72 a week ago. Crude prices are about $8 less than a year ago. ($77.58 on Feb. 26, 2024)
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
For the week, the national average remains at $3.68 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average holds steady at $3.88. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $4.08 and the Oregon average was $4.14.
Find current fuel prices at GasPrices.AAA.com.
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Fuel prices are updated daily at AAA’s Daily Fuel Gauge at AAA Fuel Prices. For more info go www.AAA.com. AAA Oregon/Idaho provides more than 910,000 members with travel, insurance, financial and automotive-related services, and is an affiliate of AAA National, serving more than 65 million members in North America.