The national average for a gallon of regular gas has fallen to approximately $3.13 this month, a three-cent decrease from August 2021. In contrast, Oregon's average has risen to about $3.98 per gallon—a 20-cent increase over the same period. This places Oregon as the state with the fourth-highest gas prices in the nation, trailing only California, Hawaii, and Washington.
The disparity is attributed to a combination of factors unique to the Pacific Northwest, including higher state gas taxes, environmental regulations, and the logistical challenges and costs associated with transporting fuel to the region.
Even as Oregon lawmakers consider a proposed six-cent increase to the state's gas tax to fund transportation infrastructure, drivers are feeling the pinch at a time when much of the country is benefiting from lower fuel costs. The Trump administration has credited its energy policies for the national decline, with the White House touting "the lowest Labor Day prices since 2020."
Despite the year-over-year increase, Oregon's gas prices have not kept pace with inflation, offering some relative relief. However, the current prices remain substantially higher than the August 2020 averages of $2.18 nationally and $2.66 in Oregon.