PORTLAND, Ore. – Drivers across Oregon are feeling the pinch at the pump after gas prices jumped sharply this week, reaching their highest levels of the year.
According to AAA, the statewide average for regular unleaded gasoline rose to $4.14 per gallon, a 16-cent increase from last week and the largest weekly price spike in the nation. In Portland, prices climbed even higher, averaging $4.30 compared to $4.10 just seven days earlier. Across the state, 23 of Oregon’s 36 counties now report averages at or above $4 per gallon.
Refinery Issues and Pipeline Outages
So, what’s driving the increase? Experts point to a combination of refinery problems and a pipeline outage.
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Marie Dodds, public affairs director for AAA Oregon/Idaho, explained that both planned and unplanned maintenance at refineries in Puget Sound and California have significantly tightened gasoline supplies on the West Coast. At the same time, reports surfaced of an outage at the Olympic Pipeline, which carries fuel from Washington refineries to Portland.
“Gasoline supplies on the West Coast are very tight due to refinery maintenance and as the last of the summer-blend gas is produced,” Dodds said.
The supply disruptions have pushed wholesale gasoline prices higher, and those costs are being passed on to drivers at the pump.
Impact on Fuel Supply
Major fuel suppliers are already acknowledging the strain. In a statement to KGW, Chevron confirmed it was monitoring the pipeline outages and adjusting operations.
“We are aware of the pipeline outages in the Pacific Northwest, and we are managing our fuel supplies accordingly,” the company said. “Depending on the extent, some Chevron stations in Oregon and Washington may experience fuel shortages. We are exploring all options to ensure these motorists have access to our high-quality fuels.”
Relief on the Horizon
Despite the steep jump, experts say the price hike may not last long. Starting September 15, Oregon gas stations will be allowed to begin selling winter-blend gasoline, which is cheaper to produce than summer-blend fuel.
“Winter-blend gas costs less to make and should help bring some relief at the pumps,” Dodds explained. Historically, the switch lowers prices by 10 to 15 cents per gallon, giving drivers a temporary reprieve through the fall.
However, prices often start climbing again in late winter and early spring as demand increases and refineries prepare for the next round of summer-blend production.
Oregon Outpaces the Nation
Oregon stands out not just for the week-to-week jump but also for how much higher its prices are compared to last year. According to AAA, Oregon is one of only eight states where drivers are paying more than they were a year ago. The national average price for regular gasoline is $3.20 per gallon, about eight cents less than this time last year. By contrast, Oregon’s current average is 38 cents more than in 2024, marking the largest year-over-year increase in the country.
Why the West Coast Pays More
Drivers on the West Coast are no strangers to higher fuel costs. The region consistently ranks among the most expensive in the nation due to tight supplies and higher transportation costs. The West Coast consumes almost as much gasoline as it produces, leaving little cushion when refineries experience disruptions. Its distance from major oil drilling and refining hubs also adds to costs.
As of September 9, Oregon had the fourth-highest average gas price in the U.S., trailing only California ($4.63), Washington ($4.50), and Hawaii ($4.48).
For now, Oregon drivers will have to endure higher costs until winter-blend fuel hits the market and supply disruptions ease. Until then, filling up the tank will remain an expensive task across much of the state.
