The cost of a barrel of oil remains about $120 per barrel, nearly double last August’s price, as increased demand for oil outpaces the tight global supply. Despite record high gas prices, demand for gasoline in the U.S. remains strong as the summer driving season ramps up. As a result, pump prices are up in all 50 states, and nearly half of all states have averages at or above $5 a gallon. For the week, the national average for regular jumps 10 cents to $5.02 a gallon. The Oregon average climbs eight cents to $5.54. These are both at record highs; in fact new record highs continue to be set almost daily.
“The skyrocketing pump prices have not caused demand for gas to drop. If prices remain above $5, we may start to see demand destruction if people change their daily driving habits, but it hasn’t happened yet. People seem eager to drive and take summer vacations after staying close to home for two years during the pandemic,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
All 50 states have averages above $4 a gallon and 21 states, including Oregon, and the District of Columbia have averages above $5. California remains the only state with an average above $6. The national and Oregon averages continue to set new record highs almost daily.
