Pump Prices are Lowest for the Holidays since 2020 as Travel Volume Soars to New Record High
PORTLAND, Ore., – A mixed bag for gas prices. They’re climbing in about half of all states. The national average for regular gas has been inching up the last few days. It’s been close to $3 for weeks but has not fallen below that threshold. The Oregon average has been slowly ticking down and is at its lowest price of the year so far. Drivers heading out on holiday road trips will find the cheapest gas prices for the holidays since 2020. For the week, the national average for regular adds two cents to $3.03 a gallon. The Oregon average loses three cents to $3.47 a gallon.
2024 will be a record year for holiday travel. AAA projects 119.3 million Americans (35% of the population) including 1.68 million Oregonians will travel 50 miles or more for the Christmas, Hanukkah, and New Year holidays. This year’s travel volume narrowly beats the previous record set in 2019 by 64,000 travelers. About 90% of holiday travelers will drive to their holiday destinations. Find details, graphics, and lots of advice for travelers in the AAA holiday travel news release.
Those taking a holiday road trip will find the cheapest gas prices for the holidays since 2020.
“Gas prices will often reach their seasonal lows sometime between December and February, so pump prices may be close to bottoming out. Crude oil prices increased last week, which can put some upward pressure on pump prices,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “Still, drivers are enjoying a holiday gift of the lowest gas prices for the holidays in four years,”
The Oregon average began 2024 at $3.79 a gallon compared to $3.47 today. This is the lowest price so far in 2024 and the highest is nearly $4.51 on May 1. The national average started the year at $3.11 and is at $3.03 today. The lowest price so far this year is $3.01 on December 10, and the highest is just under $3.68 on April 19.
Gas prices typically 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. is once again at a record high. The U.S. Energy Information Administration (EIA) reports that crude production in this country rose from 13.51 to 13.63 million barrels per day for the week ending December 6. Production has been at 13.5 million barrels per day several 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 between about $67 and $74 per barrel since mid-October. Crude prices increased last week due to additional sanctions on Russia and Iran which would tighten supplies. Crude prices have eased to start this week on lackluster consumer spending in China, which is the world’s largest consumer of oil.
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. In addition, production cuts by OPEC+ have tightened global crude oil supplies, which will continue to impact prices.
The price of crude oil reached the year-to-date high of nearly $87 per barrel on April 5. Major drivers of elevated crude prices have been the unrest in the Middle East, the decision by OPEC+ to keep oil production cuts in place, and 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.
Crude oil is trading around $69 today compared to $69 a week ago and $72 a year ago. In 2023, West Texas Intermediate ranged between $63 and $95 per barrel. Crude 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 oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 55% of what we pay for in a gallon of gasoline is for the price of crude oil, 11% is refining, 18% distribution and marketing, and 16% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. edged up from 8.74 million b/d to 8.81 million b/d for the week ending December 6, according to the U.S. Energy Information Administration (EIA). This compares to 8.86 million b/d a year ago. Meanwhile, total domestic gasoline stocks rose from 214.6 million barrels to 219.7, while gasoline production increased last week, averaging 10.0 million barrels daily.
Pump prices may be close to bottoming out. We could see some additional declines if crude oil prices don’t rise.
Quick stats
Oregon is one of 26 states and the District of Columbia with lower prices now than a week ago. Alaska (-7 cents) has the biggest week-over-week drop. Ohio (+20 cents) has the largest week-over-week increase in the nation. The averages in Kansas and Alabama are flat.
Hawaii ($4.54) has the most expensive gas in the nation for the seventh week in a row. California ($4.32) is second. These are the only two states in the country with averages still at or above $4 a gallon. This week 18 states and the District of Columbia have averages in the $3-range. There are 30 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.53) and Mississippi ($2.59). 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 $2.01 this week, compared to $2.04 a week ago.
Oregon is one of 39 states and the District of Columbia with lower prices now than a month ago. The national average is four cents less and the Oregon average is eight cents less than a month ago. Delaware (-32 cents) has the largest month-over-month drop in the nation. Ohio (+17 cents) has the largest month-over-month increase.
Oregon is one of 38 states and the District of Columbia with lower prices now than a year ago. The national average is four less and the Oregon average is 39 cents less than a year ago. This is the largest year-over-year drop in the nation. Ohio (+30 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 six of the 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 12/17/2024 |
| 1 | Hawaii | $4.54 |
| 2 | California | $4.32 |
| 3 | Washington | $3.92 |
| 4 | Nevada | $3.61 |
| 5 | Oregon | $3.47 |
| 6 | Alaska | $3.35 |
| 7 | Pennsylvania | $3.23 |
| 8 | District of Columbia | $3.23 |
| 9 | Illinois | $3.21 |
| 10 | New York | $3.14 |
As mentioned above, Hawaii has the most expensive gas in the country for the seventh week in a row. California, Washington, Nevada, Oregon, and Alaska round out the top six. Arizona is 12th. Oregon is fifth for the 18th week in a row.
All seven states in the West Coast region are seeing small to moderate declines in gas prices on the week: Alaska (-7 cents) has the largest drop in the region and the country. Arizona (-3 cents), California (-4 cents),
Washington (-3 cents), Oregon (-3 cents), Nevada (-2 cents), and Hawaii (-2 cents) all have week-over-week declines.
The refinery utilization rate on the West Coast fell from 90.0% to 85.9% for the week ending December 6. This rate has ranged between about 76% to 92% in the last year. The latest national refinery utilization rate slipped from 93.3% to 92.4%. 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 climbed from 26.30 million bbl. to 28.16 million bbl.
A decrease in the refinery utilization rate and/or a low rate can put upward pressure on pump prices, and an increase in gasoline stocks can put downward pressure on pump prices.
Oil market dynamics
Crude oil prices ended last week above $71 per barrel which is the highest price since November 22. Crude prices rose due to additional sanctions on Russia and Iran and how that would impact supplies. Crude prices are lower to start this week due to some lackluster economic news out of China and Germany. Meanwhile, the EIA reports that crude oil inventories decreased by 5.1 million barrels from the previous week. At 423.4 million barrels, U.S. crude oil inventories are about 5% below the five-year average for this time of year.
At the close of Friday’s formal trading session, WTI added $1.27 to settle at $71.29. At the close of Monday’s formal trading session, WTI fell 58 cents to settle at $70.71. Today crude is trading around $69 compared to $69 a week ago. Crude prices are about $3 less than a year ago.
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 dips one cent to $3.50 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average falls three cents to $3.78. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $4.02 and the Oregon average was $4.44.
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 Gas 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.