A closure of the Olympic Pipeline sent gas prices skyrocketing in Oregon and Washington, at the same time that refineries in California started the transition to summer-blend fuel. A spokesperson for BP said that the pipeline resumed operations last Thursday, after being shut down for maintenance and repairs on Tuesday. Wholesale prices in the Pacific Northwest shot up and consumers were hit with double-digit increases at the pumps. Higher crude oil prices due to geopolitical tensions between the U.S. and Iran are also putting upward pressure on pump prices. For the week, the national average for regular adds three cents to $2.95 a gallon. The Oregon average soars 22 cents to $3.91 a gallon. Oregon has the biggest week-over-week jump for a state in the nation.
“The outage of the Olympic Pipeline as well as refinery maintenance in the West Coast region created very tight supplies here and drivers are feeling pain at the pumps. The re-opening of the pipeline should ease the situation a bit, but the normal seasonal price increases will continue as refineries in the region undergo maintenance ahead of the switch to summer-blend fuel,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “The unknown is how ongoing geopolitical tensions between the U.S. and Iran will impact crude oil prices, which remain elevated. Higher crude oil prices mean higher pump prices.”
The 400-mile Olympic Pipeline carries refined petroleum products from the refineries in Washington State to distribution terminals in the Pacific Northwest, including Portland. The pipeline was out of operation last September and November, and those closures also caused fuel prices in Oregon and Washington to spike.
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 $3.91. 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 $2.95. The lowest price of the year so far is $2.795 on January 11.
Demand for gasoline in the U.S. gasoline increased from 8.30 million b/d to 8.75 million for the week ending February 13. This compares to 8.24 million b/d a year ago. Total domestic supply of gasoline decreased from 259.1 million barrels to 255.8 million. Gasoline production increased last week, averaging 9.4 million barrels per day, compared to 9.1 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 $66.43 on Feb. 19, 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. 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 $66 today, near seven-month highs, compared to $62 a week ago and $71 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, current geopolitical tensions with Iran, 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, 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 13.74 million barrels per day for the week ending February 13. 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 36 states and the District of Columbia with higher prices now than a week ago. Oregon (+22 cents) and Washington (+20 cents) have the largest week-over-week increases in the nation. Michigan (-3 cents) has the biggest week-over-week decrease in the country.
California ($4.63) has the most expensive gas in the nation for the third week in a row. Hawaii ($4.40) is second, and Washington ($4.35) is third. These are the only states with averages at or above $4 a gallon. This week seven states and the District of Columbia have averages in the $3-range. There are 40 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.37) and Arkansas ($2.50) 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 $2.25 this week, compared to $2.29 a week ago.
Oregon is one of 39 states with higher prices now than a month ago. The national average is nine cents more and the Oregon average is 55 cents more than a month ago. Oregon has the largest month-over-month jump in the nation, and Washington (+51 cents) has the second-largest increase. Indiana (-11 cents) has the nation’s largest month-over-month drop.
Oregon is one of four states with higher prices now than a year ago. The national average is 19 cents less, while the Oregon average is 14 cents more. Oregon has the second-largest year-over-year jump in the nation, behind Washington (+20 cents). Iowa (-42 cents) has the largest year-over-year drop in the nation.
