Gas prices are showing less movement in Oregon and many other states this week. Crude oil prices remain in the $90s as markets digest the potential for a peace deal between the U.S. and Iran. For the week, the national average for regular slips 2 cents to $4.12 a gallon. The Oregon average dips one cent to $4.99 a gallon.

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. Crude oil prices soared early last week but then fell on news of a two-week ceasefire between the U.S. and Iran. Oil prices started moving higher again last week, then surged yesterday (Monday) in response to the failed peace talks between U.S. and Iran, and a statement from President Trump saying the U.S. would blockade ships trying to enter or leave the Strait of Hormuz. Crude oil prices have eased today on hopes of more peace talks between the U.S. and Iran.

Crude oil prices remain significantly higher than before the conflict began. West Texas Intermediate, the U.S. benchmark for crude, spiked from about $67 per barrel the day before the conflict to $112 last week. Today WTI is trading around $93.

“The ongoing unrest in the Middle East and disruptions in the Strait of Hormuz continue to keep crude oil prices elevated, and in turn, gas and diesel prices will remain higher as well. With 20% of global oil supplies impacted, drivers likely won’t get significant relief at the pumps anytime soon, but at least drivers are seeing fairly stable pump prices for now,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.

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.

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 $5.014 on April 9. The lowest price of the year so far is $3.33 on January 20.

The national average began 2026 at $2.83 a gallon. The highest price of the year so far is $4.166 on April 9. The lowest price of the year so far is $2.795 on January 11.

Demand for gasoline in the U.S. gasoline decreased from 8.69 million b/d to 8.56 million for the week ending April 3. This compares to 8.43 million b/d a year ago. Total domestic gasoline supply decreased from 240.9 million barrels to 239.3 million. Gasoline production decreased last week, averaging 9.4 million barrels per day compared to 9.6 million the previous week.

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 near four-year highs, due to supply disruptions caused by the conflict with Iran. WTI had mostly been in the upper $50s to mid-$70s since September 2024. Oil prices rose in February, in part driven by escalating tensions between the U.S. and Iran. Then crude oil prices shot up after the strikes on Iran by the U.S. and Israel. Any conflict with Iran can send oil prices higher, as Iran is a major oil producer and about a fifth of the oil consumed globally travels through the Strait of Hormuz between Iran and Oman.

WTI is trading around $93 today, compared to $113 a week ago and $62 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 current conflict with Iran and disruptions in the Strait of Hormuz, economic uncertainty, the situation in Venezuela, tensions over Greenland, sanctions on Iran’s oil, unrest in the Middle East, 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.

In addition, moves by OPEC+ impact crude oil prices. Production cuts by the cartel in previous years tightened global crude oil supplies, which continued to impact prices. But in 2025, the cartel boosted production which put downward pressure on crude oil prices. For the first quarter of 2026, OPEC+ said it would not have production hikes in the first quarter of this year due to lower demand. However, at its meeting on March 1, OPEC+ said it would boost oil production by 206,000 barrels a day in April. However, oil production in the Middle East has plunged due to the Iran war, according to OPEC data.

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 51% of what we pay for in a gallon of gasoline is for the price of crude oil, 20% is refining, 11% distribution and marketing, and 18% 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 13.60 million barrels per day for the week ending April 3. 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 28 states with lower prices this week. Iowa (+18 cents) has the largest week-over-week jump in the country. Indiana (-14 cents) has the largest week-over-week decline. Most states (43) are seeing pump prices change by less than 10 cents on the week.

California ($5.88) has the most expensive gas in the nation for the 10th week in a row. Hawaii ($5.65) is second, and Washington ($5.39) is third. These are the states with averages at or above $5 per gallon. This week there are 16 states and the District of Columbia with averages at or above $4 a gallon. This week 31 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 Oklahoma ($3.44) and Kansas ($3.50). 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 $2.44 this week, compared to $2.58 a week ago.

All 50 states and the District of Columbia have higher prices now than a month ago. The national average is 44 cents more and the Oregon average is 57 cents more than a month ago. Hawaii (+75 cents) has the largest month-over-month jump in the nation. Colorado (+16 cents) has the smallest.

All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 93 cents more, while the Oregon average is $1.01 more. Arizona (+$1.30) has the largest year-over-year jump in the nation. Nebraska (+55 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

Like gas prices, diesel prices are showing less movement this week. Diesel prices had been increasing faster than gasoline due to low global supplies that have been exacerbated by the conflict with Iran.

For the week, the national average remains at $5.65 a gallon. This is the highest price for the national average for diesel since July 2022. The record high is $5.816 set on June 19, 2022.

The Oregon average rises six cents to $6.34. This is the highest price for the Oregon average for diesel since July 2022. The record high is $6.47 set on July 3, 2022.

A year ago the national average for diesel was $3.58 and the Oregon average was $3.93.

Source: AAA

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