OREGON

Tough Questions and Straight Answers
About Oregon Gasoline Prices

WSPA realizes that consumers have asked a lot of tough questions lately about gasoline prices. We welcome those questions and offer the following information to help foster a healthy public dialogue on these issues.

What’s going on with gasoline prices?
According to the United States Energy Information Administration (EIA), gas prices increased nationwide earlier this year due largely to higher crude oil prices pushed by fears of a war in Iraq and a slow recovery in Venezuelan imports, plus other supply/demand factors. Changing market conditions have driven prices down substantially since their March peak.

Why are Oregon gasoline prices generally higher than in other states?
For one thing, Oregonians pay some of the highest state taxes on gasoline in the country – 24 cents per gallon, according to the Oregon Department of Transportation. Further, Oregon is one of only two states that ban self-service gasoline, resulting in higher labor costs at Oregon service stations compared to stations in almost every other state.

How do Oregon’s gasoline prices compare with those in other Western states?
Actually, Oregon’s price for regular gasoline, as of the end of June, was over 9 cents per gallon lower than the average in the six Western states, according to the Automobile Club. The EIA has reported that prices in the Western states tend to be higher than those in the rest of the nation due to factors such as geographic isolation from resources east of the Rocky Mountains.

How do gasoline prices compare to the costs of other products?
According to the US Bureau of Labor Statistics, which reports the Consumer Price Index (CPI), gasoline prices have risen far less than many other products we use every day, including electricity, food, housing and medical care.

Are refiners making disproportionate profits on these high gas prices?
The EIA, in a report dated March 12, 2003, asked the question: “Do current prices for petroleum products, particularly gasoline, reflect gouging? In EIA’s estimation, the answer is ‘no’.” This is consistent with previously reported EIA findings that “there is adequate competition on the West Coast,” and “refiner/marketers cannot extract higher profits from consumers.”

What’s being done right now to protect consumers?
Recently, the FTC stepped up its market oversight activities by initiating daily gasoline price monitoring to guard against pricing irregularities. And the EIA has a toll-free hotline for consumers to report suspected gasoline price gouging: (800) 244-3301.

Western States Petroleum Association
111 SW Fifth Avenue #3500, Portland, OR 97204

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