PORTLAND, Ore. (KOIN) — As of today, AAA has reported the average cost for a gallon of regular unleaded gas in Oregon has officially reached $4.
The increase is up two cents from the state’s average cost of $3.98, reported by KOIN 6 News last week.
According to AAA the spike in gas and oil prices across the US is only projected to get worse as tensions in Ukraine ramp up. A recent analysis by the company found the Russia-Ukraine crisis has escalated crude oil costs to the highest levels seen in almost eight years.
Prior to the Russian invasion, AAA stated Tuesday, “The potential invasion of Ukraine by Russia is having a rippling effect on the global oil markets, sending crude oil prices higher, which in turn is driving up the price of gasoline in the U.S.”
AAA data showed US drivers in 47 states have seen a jump in pump prices since the beginning of the conflict.
Oregon and Washington are currently included in the list of top 5 states with the highest gas prices in the nation.
As of the publication of this article, AAA reported California had the highest gas prices in the nation with an average cost of $4.771 per gallon of regular unleaded, followed by Hawaii with an average cost of $4.542, Oregon at $4, and Washington with a reported average cost of $3.986 per gallon.
Two days before Russia invaded Ukraine, AAA predicted such actions could have a direct impact on US oil and gas prices saying, “A Russian attack would be met by severe financial sanctions led by the United States and its allies. Russia will likely retaliate by withholding oil from the world market, which is already tight and struggling to keep up with demand as nations worldwide move on from COVID-related economic slowdowns.”
AAA reported crude oil prices have continued to be above $90 per barrel, which is roughly $31 more expensive than last year’s prices.
Since the U.S. Energy Information Administration has stated the cost of crude oil accounts for approximately 53% of total pump prices, AAA does not anticipate a decrease in gas prices anytime soon.
“Russia is one of the world’s leading oil producers along with the U.S. and Saudi Arabia,” explained Marie Dodds, public affairs director for AAA Oregon and Idaho. “If Russia chooses to take its oil from the global market, that would create even tighter supplies which would result in higher gas prices for American drivers.”
Dr. Bahram Adrangi, professor of economics at the University of Portland, spoke with KOIN 6 News following Russia’s invasion to discuss how the conflict could impact the wallets of local residents.
“The demand is about to shoot up,” Adrangi explained. “In the short-to-mid term I think we’re going to see a spike. Though I can’t tell you how much, my own studies show that these shocks usually last about 12 months. So, I’m expecting to see a spike in gas prices all over the world, in the US, and of course in the Pacific Northwest.”
To hear Dr. Bahram Adrangi’s full interview with KOIN 6 News visit here.