Fueling Up in Oregon: Supply & Pricing
Recent local and national headlines have highlighted what many Oregonians are experiencing when they stop to get gas: prices have increased at the pump.
International and national actions are affecting prices across the country, including here in Oregon. While Oregonians are seeing fuel costs go up, the state does not expect to experience any fuel shortages.
So where do our transportation fuels come from, and what affects prices?
Oil and gas basins and prospective shale development in the U.S.
In our 2020 Biennial Energy Report, we shared how Oregon acquires its various transportation fuels. While interest in alternative fuels, like electric vehicles, is growing, about 90 percent of our transportation fuels are still petroleum-based. In fact, gasoline represents about half of the state’s transportation fuel use.
The Pacific Northwest has no crude oil resources and is isolated from the nation’s major petroleum production regions. There are five major oil refineries located in Washington State, two near Bellingham, two near Anacortes, and one in Tacoma. These refineries import the crude oil required for fuel production from North Dakota, Alaska, and Canada. Oregon does produce 30 percent of the ethanol and 12 percent of the biodiesel that is blended into gas and diesel fuel consumed in Oregon to reduce greenhouse gas emissions. Electricity generated in Oregon also powers electric vehicles. Most of the low-carbon fuels consumed in Oregon today are imported into the state but there is opportunity to expand Oregon’s production and consumption of low-carbon fuels.
The Washington State refineries provide more than 90 percent of the refined petroleum products used in Oregon, which are delivered via the Olympic pipeline and barged to multiple Portland-area terminals. These terminals receive, store, blend, and transfer renewable fuels and petroleum products. Some of this product flows in a pipeline south to Eugene, and jet fuel is delivered in another pipeline directly to the Portland International Airport. The Eugene distribution hub serves southern, central, and eastern Oregon. Towboats with tank barges also carry refined renewable fuels and petroleum products up the Columbia River to Pasco, Washington, to service eastern communities in Washington, Oregon, and Idaho. A major refined fuel product pipeline crosses eastern Oregon, originating in Utah and terminating at Pasco. Some of this fuel makes its way back into Oregon via truck.
In 2022, Oregonians spent about $11.2 billion on transportation fuels, from gasoline and diesel to jet fuel and electricity. Most of those dollars are sent to other states and countries where extraction, processing, and refining of transportation fuels occurs. For most households, transportation fuel means gasoline.
Many factors influence the price of fuel. Much of the overall price of fuel comes from the crude oil itself, as well as the costs to refine the oil into useful fuel. Other costs include distribution and marketing by petroleum companies. Federal and state taxes also affect gas prices. State taxes are levied on transportation fuels by the gallon to fund the creation, preservation, and maintenance of Oregon’s roads and highways – as of 2026, Oregon’s fuel tax rate is 40 cents per gallon of gasoline or diesel. Many cities also levy taxes on fuels by the gallon to preserve and maintain local roads. There is also additional cost due to compliance with regulations, such as the Oregon Clean Fuels Program and Climate Protection Program.