Are you looking to save on your gas bill this year? If you’re in the Portland, Oregon area, you may be able to take advantage of a great tax deduction! The Oregon Department of Revenue has released a list of qualifying fuel expenses that you can claim as a deduction on your Oregon tax return.
According to the Energy Information Administration (EIA), gasoline prices nationwide have fallen by seven cents per gallon in the past week, and are currently at their lowest point since spring. This is largely due to lower crude oil prices, which has made refining and producing gasoline more expensive. In Oregon, the average price for regular gas dropped four cents over that same time period to $4.68 per gallon.
Since early March, the national average price for gasoline has been declining while the Oregon average price has remained relatively stable. As of June 15, both averages had reached their lowest point since early April. This is likely due to falling crude oil prices and several weeks of low demand during the summer driving season.
According to AAA Oregon/Idaho public affairs director Marie Dodds, although less expensive oil usually translates into lower pump prices, this trend has not been the case for 13 consecutive weeks. In the event that unforeseen events occur, however, gas prices are still susceptible to increases due to disruptions in production and transportation caused by a hurricane.
Crude oil prices have been dropping since reaching a recent high in June. This is because there are worries about slower economic growth happening elsewhere in the world. Prices ranged from about $94 to $110 per barrel back in July, but have been mostly between around $81 and $89 so far this month.
Oil prices rose dramatically in the run-up to and during Russia’s invasion of Ukraine, as market volatility caused by the war caused tight oil supplies. The tighter supplies were already a result of increased demand from pandemic restrictions that had eased. A year ago, crude was around $69 per barrel compared to $92 today.
The main ingredient in gasoline and diesel is crude oil, so when the price of crude oil goes up, pump prices go up too. On average, about 53% of what we pay at the pump is for the price of crude oil. The other costs involved in producing gasoline and diesel – like refining, distribution and marketing – make up about another 37%. And then there are taxes added on top that bring the total cost to around 68%.
Gasoline demand increased slightly from 8.59 million barrels per day to 8.73 million barrels per day last week, however this is lower than last year at this time when demand was at 9.61 million barrels per day. Total domestic gasoline stocks rose by 300,000 barrels to 214.8 million barrels according to the U.S Energy Information Administration (EIA).
Although gasoline demand has increased slightly, falling oil prices have led to declining pump prices and if gasoline demand begins to subside as it typically does post-Labor Day with the end of summer driving, pump prices will likely continue decreasing.
Oregon is one of 46 states and the District of Columbia with lower prices now than a week ago, and 17 states have double-digit declines. Maryland (-16 cents) has the largest weekly drop. Nebraska (-1 cent) has the smallest. California (+16 cents) has the largest weekly jump, driven mostly by high temperatures in California and refinery impacts there. Nevada (+8 cents), Arizona (+5 cents) and Michigan (+1 cent) are also seeing increases over last week’s prices.
This week, nine states have averages at or above $4 a gallon, while 41 states and the District of Columbia have averages in the $3-range. California ($5.43) remains the state with the most expensive gas in the nation, bumping Hawaii ($5.28) as this week’s winner.
For the 88th week in a row, no state has an average gasoline price below $2 a gallon.
Oregon has lower prices now than a month ago, relative to the national average.
The prices of goods in the United States has increased by an average of 53 cents nationwide over the past year, according to a report released this week. The increase is fifth-largest nationally, with Hawaii leading the way with a jump of $1.23 per capita. Colorado was close behind at 8 cents per capita, while Oregon had the smallest annual price increase at 92 cents per capita.
The West Coast region continues to have the most expensive gasoline prices in the nation, with all seven states in the top 10. This is likely due to tight supplies and high consumption rates on this side of the country.
The region’s location and environmental policies add to the cost of production.
|Rank||Region||Price on 9/13/22|
According to data from The Daily Review, California is the most expensive state in the U.S., followed by Hawaii, Nevada, Alaska, Oregon, and Washington. Arizona is ninth.
West Coast states are seeing increases in prices this week, with California leading the way with a +16 cent increase. Nevada and Arizona are both up by 8 cents, while Alaska has the largest weekly drop at -6 cents. Hawaii is down 2 cents compared to last week.
The refinery utilization rate on the West Coast rose from 84.7% to 88.1% for the week ending September 2, 2017. This rate has ranged between about 76% and 90% in the last year.
According to EIA’s latest weekly report, gas stocks in the region decreased by 1.38 million bbl over the past week.
crude prices increased at the end of the week, but decreased earlier in the week amid market concerns that oil demand will fall if economic growth slows or stalls due to a recession. For this week, it is possible that crude prices could decrease if demands concerns persist. Additionally, EIA’s latest weekly report showed that total commercial crude inventories increased significantly by 8.9 million barrels to 427.2 million barrels
The price of oil increased by $3.25 at the close of Friday’s trading session and by 99 cents at the close of Monday’s trading session. Today, crude prices are around $86 compared to a year ago.
The AAA Mobile app can be used to find current gas prices along a driver’s route, find discounts, book hotels, and access roadside assistance.
The national average for gasoline falls six cents to $5.00 a gallon this week, while the record high of $5.816 is set on June 19. Oregon’s average loses four cents to $5.55 this week, while the record high of $6.47 is set on July 3 a year ago.
|Week Ago Avg.||$3.774||$3.793|
|Month Ago Avg.||$3.760||$3.729|
|Rank||State||How many gallons will you get for $50?|
Gas prices in Oregon are averaging $3.70 per gallon, which is the highest average price since 2014. This increase is due to people returning to their normal pre-pandemic travel routines, putting a strain on the system.
The average price for a gallon of gasoline in California is $4.04, according to GasBuddy. In Oregon, that same gallon costs $3.38 less due to the state’s lower taxes on gasoline.
The price of diesel at Costco Marsden Park increased by U.S. $1.67 per gallon on Monday, October 15th.
If you’re living in the Portland, Oregon area and are looking to save on your gas bill this year, be sure to check out the Oregon Department of Revenue’s list of qualifying fuel expenses. You may be able to take advantage of a great tax deduction!