National Average Sets Another Record High, Oregon Prices Hold Steady

"The national average for regular unleaded reaches another record high, as the price of crude oil also climbs into record territory again. But the Oregon average rises only a fraction of a cent this week, and some of Oregon′s metro areas are showing slight declines." AAA Oregon Public Affairs Director Marie Dodds says, "The statewide average for regular unleaded in Oregon increases four-tenths of a cent this week to $4.29, while the national average increases nearly two cents to $4.09. Oregon and Washington are among 37 states, including the District of Columbia, with averages for regular unleaded at or above $4 per gallon, up from 31 states last week."

AAA predicts the national average will be near $4.10 per gallon as the Independence Day holiday weekend begins. Fuel prices are expected to increase as the price of crude oil escalates. It hit an all time high of $143.63 during trading Monday and is trading around $142 per barrel today. Prices at the pumps could easily move five to ten cents higher in the next couple weeks. Crude oil prices are up about 46% since the start of 2008. Crude began the year at about $96 per barrel.

The higher prices are being driven by worries about Nigerian production and concerns of tensions in the Middle East, specifically speculation about whether Israel is preparing for a possible attack on Iran′s nuclear installations. Other ongoing factors impacting the price of crude include a weak U.S. dollar and increasing demand in developing nations such as China and India. The International Energy Agency today cut its demand forecast for petroleum for the next five years, but still says global demand will still climb from current levels and increase by seven million barrels per day by 2013.

Prices at the pumps continue to be much higher than they were a year ago. The national average was $2.96 last year, while Oregon′s average was $3.04.

Oregon′s gas prices are 7th highest in the nation for the fourth week in a row. Alaska edges past California this week with the most expensive gas in the country at $4.64 a gallon, followed by California at $4.58, Hawaii at $4.43, Connecticut at $4.37, and Washington at $4.34. South Carolina has the least expensive gas in the country this week at $3.87 per gallon.

Diesel prices are holding fairly steady. The national average falls nearly a penny to $4.76, while Oregon′s average also drops a cent to $4.80. Diesel averages are above $5 per gallon in four states, same as last week. Hawaii has the highest statewide average price for diesel again this week at $5.32, followed by Alaska at $5.23, New York at $5.11, California at $5.07, and Connecticut at $4.98. Oregon′s diesel prices are the 16th most expensive, down from 15th last week. A year ago the national average for diesel was $2.91 and Oregon′s average was $2.88.

Get the latest fuel prices at AAA′s Daily Fuel Gauge at www.fuelgaugereport.com. For a comparison of fuel prices across the nation, go to the AAA Fuel Price Finder at www.AAA.com. AAA Oregon/Idaho provides more than 700,000 members with travel, insurance, financial and automotive-related services, and is an affiliate of AAA National, serving more than 50 million motorists in North America.