Travelers Will Enjoy Lowest Thanksgiving Pump Prices Since 2009

(PORTLAND, Ore) — “The national average for regular unleaded has been below $3 a gallon for 17 consecutive days, with more than three-quarters of U.S. gas stations now reporting prices below this price. For the week, the national average loses a nickel to $2.88 a gallon while Oregon’s average slips half a cent to $3.07.” AAA Oregon/Idaho Public Affairs Director Marie Dodds says, “Both averages are at their lowest price since December 2010 due to falling global oil prices. Travelers heading over the river and through the woods for Thanksgiving will enjoy the lowest retail gas prices for the holiday since 2009 when the national average was $2.63 and the Oregon average was $2.75.”

Gas prices are lower in 48 states and Washington D.C. this week, with 35 states reporting an average below $3 a gallon. Drivers in South Carolina are paying the least for gas at $2.63, while the nation’s most expensive market continues to be Hawaii at $3.95. It’s the second week in a row that Hawaii’s average has been below the $4 mark. California and Washington are among the top ten most expensive states for gasoline, while Oregon is in 12th place.

Current prices represent an estimated savings of more than $250 million each day for American drivers. A decrease in retail gasoline prices is often compared to a tax cut because it can inject billions of dollars in non-gasoline spending into the economy.

West Texas Intermediate (WTI) crude oil, the traditional U.S. benchmark, dropped to its lowest level in more than three years this past Thursday at $74.21 per barrel. Lower crude oil costs are the main reason why drivers are paying an average of 83 cents per gallon less than the 2014 peak of $3.70 per gallon on April 28. Oregon drivers are paying 92 cents less than the state’s 2014 high of $3.98 on July 3.

Month-over-month comparisons show that drivers in every state and Washington, D.C are paying less to refuel their vehicles. West Coast and Rocky Mountain states are registering the largest drops in prices at the pump, led by California (-37 cents), Oregon (-34 cents), Montana (-31 cents) and Arizona (-30 cents). Consumers in 20 states and Washington, D.C. are saving a quarter or more per gallon versus one month ago, and those in every state but Iowa are enjoying double-digit discounts at the pump.

The most dramatic discounts are evident when comparing year-over-year averages. Drivers in every state and Washington, D.C. are paying less, and those in 47 states and D.C. are saving a dime or more per gallon when they refuel their vehicles. Averages are down by a quarter or more in 33 states and Washington, D.C., and motorists in Delaware (-42 cents), South Carolina (-42 cents) and California (-42 cents) are saving the most per gallon over this period. Oregon drivers are paying 23 cents less than a year ago.

Global prices for crude oil continue to fall, touching lows not seen since 2010. Market analysts continue to speculate on what action the Organization of Petroleum Exporting Countries (OPEC) will take during its upcoming meeting, scheduled for November 27 in Vienna. Should the cartel opt to cut production, retail gas prices could move higher. If OPEC instead chooses to maintain market share by leaving production unchanged, global oil prices could slide even further.

At the close of Monday’s formal trading on the NYMEX, WTI settled $0.18 lower at $75.64 per barrel. Today WTI is trading around $75 a barrel, compared to $77 a week ago. Crude prices are down about 10 percent over the last month and are about $18 lower than a year ago.

For the second week in a row, there are no states with an average price for regular unleaded at or above $4 a gallon. Thirty-seven states have averages below $3 per gallon, up from 27 a week ago. Six additional states, including Oregon, are within a dime of the $3 mark.

Hawaii has the most expensive gas in the country for the 108th consecutive week at $3.95, followed by Alaska at $3.59, New York at $3.24, Connecticut at $3.18 and California at $3.15 (down six cents and fifth for the third week in a row). Idaho is sixth for the second consecutive week at $3.13 (down seven cents). Washington is 10th up from last week at $3.10 (same price as last week). Oregon is 12th up from 14th last week at $3.07 (down half a cent). South Carolina has the cheapest gas in the nation for the fourth week in a row at $2.63 a gallon (down a nickel).

Diesel prices are edging lower in most markets. The national average slips two cents to $3.62 a gallon. Oregon’s average dips half a cent to $3.64. Diesel is at or above $4 a gallon in three states, same as last week. Hawaii is most expensive at $4.82, followed by North Dakota at $4.12, Michigan at $4.01, Minnesota at $3.96 and Wisconsin at $3.89. California is 17th down from 16th at $3.75 (down three cents). Idaho is 18th down from 17th at $3.74 (down three cents). Washington is 20th up from 23rd last week at $3.72 (same price as last week). Oregon is 28th up from 29th last week. A year ago, the national average for diesel was $3.81 and Oregon's was $3.86.

Source: Oregon AAA