Prices drops were very moderate this past week, as prices across the board did not drop more than $0.10. Although the average retail price in Oregon for gasoline is expected to drop below $4, it is uncommon to see prices that low in the Portland area. The wholesale market has continued to drop with prices down $0.20 from previous weeks. Many analysts say that this is a result of the lower prices of oil over the last month, helping keep prices low at the pump. Washington’s fuel prices are still hovering over $4.30 for gasoline and over $5 for diesel. Significantly higher than the average prices throughout Oregon. Oregon also announced a new fuel tax coming onto the market in the new year which will add $0.02/gallon of fuel sold, effective Jan 1st, 2024.

Key Reasons For Lower Prices:

• Oil Market Trending Downward
• Oil prices under $75, currently $73/barrel
• Winter Fuel Blend

Crude oil is still trading below $80 for the fourth straight week at a current price of $73.49. This is $1 lower than it was last week, a good sign for fuel prices across the nation.

Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing, and 14% taxes—a helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading around $78 per barrel compared to $83 last week and $89 a year ago.

If you have any questions, feel free to contact Star Oilco and speak to one of our fuel market advisors to discuss how the market can impact your business.