Gas Prices Continue to Shrink Around Oregon, the Coast

Published 10/09/2013

(Oregon Coast) – Gas prices continue to shrink in Oregon and on the Oregon coast, with the Oregon office of the AAA saying the national average for regular unleaded falls four cents this week to $3.35 a gallon, while the Oregon average loses four cents to $3.60. Above: Lincoln City, on the central Oregon coast.

This, plus the national average at the lowest point since January, said AAA Oregon/Idaho Public Affairs Director Marie Dodds, and the lowest in Oregon since this past April.

“While U.S. and global markets work to evaluate the impact of the federal government shutdown and renewed U.S. debt ceiling concerns, retail gas prices continue to move lower,” Dodds said.

Throughout the United States gas prices are lower, Dodds said. Nationally, the average is 47 cents less than last year at this time. In Oregon, it's also 47 cents lower than last year at this point. Prices here are lower by eight cents since last month. Above: near Yachats, on the central Oregon coast, between Newport and Florence.

“Most drivers are paying the lowest gas prices in months due to abundant gasoline supplies, the end of the summer driving season, lower oil costs and the switchover to winter-blend gasoline,” Dodds said. “Supply and demand is working in most consumers’ favor with consumption down and gasoline stocks more than 10 percent higher than a year ago.”

“Most drivers are paying the lowest gas prices in months due to abundant gasoline supplies, the end of the summer driving season, lower oil costs and the switchover to winter-blend gasoline,” adds Dodds. “Supply and demand is working in most consumers’ favor with consumption down and gasoline stocks more than 10 percent higher than a year ago.”

The Midwest and central U.S. had the largest drops in the last month, dipping some 30 cents. Drivers west of the Rockies are seeing the smallest monthly declines, as prices in Alaska, Arizona, Washington, Oregon, Wyoming, Idaho, Nevada and California have all dropped less than a dime per gallon. Above: Cannon Beach, on the north Oregon coast.

Dodds said recent refinery problems in California put upward pressure on pump prices on the West Coast.

Dodds added this is now the longest run of daily declines since an 86-day period in 2008 when gas dropped all the way down $2.20 per gallon because of heavy economic problems.

This marks the longest streak of daily declines since prices tumbled 86 consecutive days September 17 to December 12, 2008, when they plummeted a whopping $2.20 per gallon in less than three months due to the struggling U.S. economy.

It appears more drops are in the cards in the coming months, according to AAA estimates. Supply has been steady, demand has been rather flat and the cheaper winter blends of gasoline are now in production. Unless some serious adverse condition like an unexpected disruption in production or a sudden hurricane interrupts the process, AAA predicts the national average could fall as low as $3.10 per gallon by Christmas.

In Oregon, the average could fall to roughly $3.35 to $3.50 a gallon.

“Gas prices could drop another 25 to 30 cents per gallon to the cheapest averages of the year barring significant refinery problems or higher oil costs,” Dodds said. “Averages in a few states could drop below $3 per gallon, but there’s a limit to how low the national average can go given the very high cost of crude oil.”

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