Refineries in California are starting the transition to summer-blend fuel, and that’s putting upward pressure on pump prices on the West Coast. California is the first state in the nation to make the transition, while East Coast states are the last. The transition usually results in price increases at the pumps because refineries often undergo maintenance ahead of the switch, which reduces output, and summer-bend fuel is more expensive to produce. Summer gasoline has a lower Reid Vapor Pressure which helps reduce evaporation in warmer temperatures. Higher crude oil prices have also put upward pressure on pump prices. For the week, the national average for regular holds steady at $2.92 a gallon. The Oregon average jumps 11 cents to $3.69 a gallon.
“Gas prices are climbing as refineries undergo maintenance ahead of the switch to summer-blend fuel. The unknown is how geopolitical tensions between the U.S. and Iran will continue to impact crude oil prices. That could mean volatility at the pumps, in addition to the normal seasonal spring increases,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
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 $3.69. 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 $2.94 on February 12. The lowest price of the year so far is $2.795 on January 11.
Demand for gasoline in the U.S. gasoline increased from 8.15 million b/d to 8.30 million for the week ending February 6. This compares to 8.58 million b/d a year ago. Total domestic supply of gasoline increased from 257.9 million barrels to 259.1 million. Gasoline production increased last week, averaging 9.1 million barrels per day, compared to 9.0 million barrels 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) has mostly been in the upper $50s to mid-$70s since September 2024.
Crude oil prices climbed to $65.42 on Jan. 29, which is the highest closing price of the year so far. Crude had been in the $55 to $62 range for the past few months. Oil prices rose due to escalating tensions between the U.S. and Iran. This week, oil prices have moved slightly lower ahead of talks between the U.S. and Iran. 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 at $62 today, compared to $64 a week ago and $72 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 impacted by economic news as well as geopolitical events around the world including the current economic uncertainty, the current situation in Venezuela, tensions over Greenland, protests in Iran, 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, production cuts by OPEC+ 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 2026, OPEC+ says it’s not planning any production hikes in the first quarter of the year due to lower demand. The cartel meets on March 1 and will decide whether to resume production increase in April.
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 47% of what we pay for in a gallon of gasoline is for the price of crude oil, 16% is refining, 20% distribution and marketing, and 17% 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 13.71 million barrels per day for the week ending February 6. 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 higher prices now than a week ago. Oregon (+11 cents), Washington (+10 cents) and California (+9 cents) have the largest week-over-week increases in the nation. Ohio (-12 cents) has the biggest week-over-week decrease in the country. The average in Montana is flat.
California ($4.59) has the most expensive gas in the nation for the second week in a row. Hawaii ($4.40) is second, and Washington ($4.16) is third. These are the only states with averages at or above $4 a gallon. This week six states and the District of Columbia have averages in the $3-range. There are 41 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.30) and Iowa ($2.45) and. 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 $2.29 this week, compared to $2.16 a week ago.
Oregon is one of 36 states with higher prices now than a month ago. The national average is nine cents more and the Oregon average is 35 cents more than a month ago. Oregon has the second-largest month-over-month increase in the nation, behind California (+38 cents. Minnesota (-6 cents) has the nation’s largest month-over-month drop.
Oregon is one of 48 states and the District of Columbia with lower prices now than a year ago. The national average is 24 cents less, while the Oregon average is eight cents less. Iowa (-59 cents) has the largest year-over-year drop in the nation. Alaska (+6 cents) and Washington (+1 cent) are the only states with year-over-year increases.
