Oregon Gas Jumps 22 Cents to $3.91 While U.S. Average Sits at $2.95

by | Feb 25, 2026 | News

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Oregon drivers just got hit again.

According to AAA, the average price of regular gasoline in Oregon jumped 22 cents in one week, landing at $3.91 per gallon as of February 24. Meanwhile, the national average rose just three cents, sitting at $2.95 per gallon.

That’s nearly a $1 difference per gallon.

Officials are pointing to the temporary shutdown of the Olympic Pipeline and refinery shifts to summer-blend fuel in California as contributing factors. Higher crude oil prices tied to geopolitical tensions are also part of the explanation.

But here’s what often gets left out of the conversation.

Oregon already starts with one of the highest gas tax burdens in the country. The state gas tax alone sits at 40 cents per gallon. That does not include federal taxes or local transit taxes layered on top in certain metro areas.

And then there are the climate-related fuel mandates.

Under former Governor Kate Brown, Oregon implemented and expanded two major fuel programs:

  • The Clean Fuels Program, which requires fuel suppliers to reduce carbon intensity and purchase compliance credits.
  • The Climate Protection Program, finalized in 2021, which caps and reduces greenhouse gas emissions from fuel suppliers and utilities.

Those programs don’t show up as a line item on your receipt. But compliance costs are passed down the supply chain and ultimately to drivers.

Industry estimates at the time projected that climate compliance costs could add anywhere from 6 to 16 cents per gallon initially, with increases over time as caps tighten.

In other words, before crude prices move, before pipelines shut down, before geopolitical tensions flare up, Oregon fuel already carries policy-driven add-ons baked into the base price.

So when the market shifts even slightly, Oregonians feel it more.

That’s how you end up with a 22-cent spike here while most of the country sees a 3-cent nudge.

To be clear, infrastructure disruptions like the Olympic Pipeline maintenance absolutely impact Pacific Northwest pricing. But Oregon drivers are paying into one of the most layered fuel systems in the nation — high base tax, carbon reduction mandates, and low-carbon fuel credit markets — all before standard supply-and-demand forces take effect.

When gas approaches $4 per gallon in February while the national average stays under $3, it’s reasonable to ask not just what changed this week — but what was already built into the system.

And in Oregon, quite a bit was.


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Written By Tyler James

Tyler James, founder of That Oregon Life, is a true Oregon native whose love for his state runs deep. Since the inception of the blog in 2013, his unbridled passion for outdoor adventures and the natural beauty of Oregon has been the cornerstone of his work. As a father to two beautiful children, Tyler is always in pursuit of new experiences to enrich his family’s life. He curates content that not only reflects his adventures but also encourages others to set out and create precious memories in the majestic landscapes of Oregon. Tyler's vision and guidance are integral to his role as publisher and editor, shaping the blog into a source of inspiration for exploring the wonders of Oregon.

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