Gas Prices Continue to Skyrocket

Gas prices continue to skyrocket due to the conflict in Iran, the ongoing closure of the Strait of Hormuz, and damage to energy infrastructure in the Middle East. Crude oil prices have surged, increasing about 67% since the start of the conflict. For the week, the national average for regular climbs 12 cents to $4.14 a gallon. The Oregon average gains seven cents to $5.00 a gallon.

The National average was $2.98 and Oregon average was $3.92 on Feb. 28, the day the U.S. and Israel launched airstrikes against Iran.

The national average rose above $4 on March 31 for the first time since March 2022. That year, the national average stayed at $4 or higher from March 6 to August 10, and rose above $5 for a week in June. These high pump prices were driven by the invasion of Ukraine by Russia.

The Oregon average hit $5.00 today for the first time since October 2022. That year, the Oregon average was at $5 or higher from May 17 to August 4, following the Russian invasion of Ukraine, and again from September 26 to October 27 after several California refineries went offline for planned and unplanned maintenance, putting a major crimp in West Coast supplies.

Crude oil prices have been surging, surpassing $100 per barrel, as the conflict in the Middle East continues. West Texas Intermediate, the U.S. benchmark for crude, closed at $67.02 on Feb. 27, and is settled around $112 per barrel Monday.

“With crude oil prices above $100 per barrel, there’s no relief in sight for drivers. In addition to the conflict in the Middle East and the resulting global oil crisis, the normal seasonal factors are also putting upward pressure on pump prices, including the annual switch to summer-blend gas,” 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. While the U.S. does not rely on Iranian oil, nations such as China, India and Pakistan do.

The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is today’s price of $5.00. 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 today’s price of $4.14. The lowest price of the year so far is $2.795 on January 11.

Demand for gasoline in the U.S. gasoline decreased from 8.92 million b/d to 8.69 million for the week ending March 27. This compares to 8.50 million b/d a year ago. 241.4 million barrels to 240.9 million. Gasoline production decreased last week, averaging 9.6 million barrels per day, compared to 9.7 million barrels per day 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 above $100 per barrel, 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 $115 today, compared to $101 a week ago and $61 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, 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. This may help mitigate the impact of the Iran conflict on oil prices.

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 13.66 million barrels per day for the week ending March 27. 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 49 states and the District of Columbia with higher prices this week. Pennsylvania (+21 cents) has the largest week-over-week jump in the country. Wyoming (+1 cent) has the smallest. Colorado (-7 cents) is the only state with a week-over-week decline.

California ($5.93) has the most expensive gas in the nation for the ninth week in a row. Hawaii ($5.60) is second, Washington ($5.39) is third, Nevada ($5.01) is fourth, and Oregon ($5.00) is fifth. These are the states with averages at or above $5 per gallon. This week there are 18 states and the District of Columbia with averages at or above $4 a gallon. This week 27 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 ($3.35) and Kansas ($3.39). 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 $2.58 this week, compared to $2.62 a week ago.

All 50 states and the District of Columbia have higher prices now than a month ago. The national average is73 cents more and the Oregon average is 84 cents more than a month ago. Hawaii (+$1.13) has the largest month-over-month jump in the nation. Minnesota (+35 cents) has the smallest.

All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 88 cents more, while the Oregon average is 99 cents more. Arizona (+$1.34) has the largest year-over-year jump in the nation. North Dakota (+38 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.

As mentioned above, California has the most expensive gas in the country for the ninth consecutive week. Hawaii, Washington, Nevada, Oregon, Arizona, and Alaska and round out the top seven. Oregon slips to fifth most expensive after two weeks at fourth.

All seven states in the West Coast region have week-over-week increases: Hawaii (+15 cents), Nevada (+8 cents), Oregon (+7 cents), Arizona (+7 cents), Washington (+5 cents), California (+4 cents), and Alaska (+3 cents).

The refinery utilization rate on the West Coast ticked down from 82.2% to 82.1% for the week ending March 27. This rate has ranged between about 72% to 93% in the last year. The latest national refinery utilization rate dipped from 92.9% to 92.1%.

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 rose from 26.93 million bbl. to 27.51 million bbl. for the week ending March 27. An increase in gasoline stocks can put downward pressure on pump prices, while a decrease in gasoline stocks can put upward pressure on pump prices.

Oil market dynamics

Crude oil prices rose to start this week as markets reacted to President Trump’s threats to Iran, that the U.S. would target bridges, power plants and other civilian infrastructure if Iran doesn’t open the Strait of Hormuz. The conflict with Iran, now in its sixth week, has led to the worst disruption in global oil supplies in decades.

Meanwhile, the EIA reports that crude oil inventories increased by 5.5 million barrels from the previous week. At 461.6 million barrels, U.S. crude oil inventories are about 0.1% above the five-year average for this time of year.

U.S. stock markets were closed Friday in observance of Good Friday. At the close of Monday’s formal trading session, WTI rose 87 cents to close at $112.41. Today crude is trading around $114, compared to $101 a week ago. Crude prices are about $53 more than a year ago. ($60.70 on April 7, 2025)

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.