Katerina Swanson
Diesel fuel prices in Oregon have been a concern for many, with prices predicted to rise in 2025. As of March 2025, the average diesel price in Oregon was $1.03 per liter, with a minimum of $0.99 in December 2024 and a maximum of $1.06 in February 2025. Oregon's diesel prices are cheaper than in California and Washington. The market dynamics and regulatory changes, such as the Blenders Tax Credit and the Clean Fuels Production Credit, influence fuel prices. Additionally, the limited fossil fuel market and the push for renewable and biodiesel options contribute to potential price fluctuations.
| Characteristics | Values |
|---|---|
| Average Diesel Price (as of March 24, 2025) | $1.03 per liter |
| Minimum Price (as of December 23, 2024) | $0.99 per liter |
| Maximum Price (as of February 24, 2025) | $1.06 per liter |
| Average Price in Oregon vs. California | $0.91 cheaper in Oregon |
| Average Price in Oregon vs. Washington | $0.52 cheaper in Oregon |
| Today's AAA Oregon Average | $3.991 |
| Gas Station Price in La Grande, OR | $2.79 |
| Gas Station Price in Coburg, OR | $3.29 |
| Gas Station Price in Bend, OR | $3.29 (biodiesel) |
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What You'll Learn
- Diesel prices in Oregon are cheaper than in California and Washington
- The average diesel price in Oregon from Dec 2024 to Mar 2025 was $1.03 per litre
- The limited market for fossil fuels is represented by Allowances from Oregon DEQ
- The price of renewable diesel in Oregon will likely track the price in California
- Biodiesel has a more widely used market development in the US than renewable diesel
Diesel prices in Oregon are cheaper than in California and Washington
Diesel prices in Oregon are, on average, cheaper than in California and Washington. According to data from December 16, 2024, to March 24, 2025, the average diesel price in Oregon during that period was $1.03 per liter, with a minimum of $0.99 on December 23, 2024, and a maximum of $1.06 on February 24, 2025. While diesel prices in Oregon can vary by station, with prices ranging from $2.79 to $3.29, they are still generally lower than in the neighboring states.
There are a few reasons why diesel prices in Oregon are cheaper than in California and Washington. One factor is the limited market for fossil fuels, which is represented by "Allowances" provided by the Oregon DEQ. If a fuel seller cannot reduce their fossil fuel dependency, they need to purchase these allowances, which can drive up costs for regulated parties. Additionally, the value of these allowances, commonly known as "Cap at the Rack," can range from nothing to over $0.50 per gallon, impacting the final price of diesel fuel.
Another factor influencing diesel prices in Oregon is the mandate for R99 renewable diesel in California. The California Air Resource Board (CARB) has mandated the use of R99 in certain diesel applications, which will raise the prices of renewable diesel in Oregon. As California is a large market that will consume significant volumes of R99, the price of R99 in Oregon is expected to track the price paid in California. This will particularly impact those who want to purchase R99 without a contractual supply agreement, as they can expect to pay a higher price.
The production of renewable diesel is also a concern. The main sources of renewable diesel for these states are Neste's Singapore plant and new US production. With the expiration of the Blenders Tax Credit, there is uncertainty about whether Congress will extend it. Instead, a subsidy regime, the "Clean Fuels Production Credit" or the "Producers Tax Credit" (PTC), offers incentives for low CO2 fuel, which could impact pricing.
While diesel prices in Oregon are currently cheaper than in California and Washington, there are indications that prices may rise in 2025 due to various factors, including the limited fossil fuel market, the mandate for R99 in California, and the production and pricing of renewable diesel.
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The average diesel price in Oregon from Dec 2024 to Mar 2025 was $1.03 per litre
Diesel fuel prices in Oregon are subject to change over time, influenced by various factors and policies. From December 2024 to March 2025, the average diesel price in Oregon stood at $1.03 per litre. This period witnessed fluctuations, with a minimum price of $0.99 on 23rd December 2024 and a maximum of $1.06 on 24th February 2025.
Oregon's diesel prices are generally lower than those in neighbouring states like California and Washington. The specific timeframe of December 2024 to March 2025 saw prices hovering around the $1.00 per litre mark, with minor variations. This stability in pricing can be attributed to a variety of factors and market dynamics.
One significant factor impacting diesel prices in Oregon is the transition towards renewable diesel and biodiesel. The state's regulatory environment, led by organisations like the Oregon DEQ, encourages a shift away from fossil fuels. This transition has created a limited market for fossil fuels, with allowances and charges influencing the cost structure. The "Cap at the Rack" system, for instance, can add up to $.50 to the cost of each gallon of fuel, depending on the seller's ability to reduce fossil fuel dependency.
Additionally, California's mandate for the use of R99 renewable diesel has had a flow-on effect on Oregon's diesel prices. The high demand for R99 in California, driven by equipment operators and off-road fleets, influences the pricing in Oregon. The availability of R99 from Neste's Singapore plant and new US production sources also plays a role in price fluctuations. The expiration of the Blenders Tax Credit and the introduction of the Clean Fuels Production Credit (or Producers Tax Credit) further contribute to the pricing landscape for diesel in Oregon.
While the average diesel price in Oregon during the specified period was $1.03 per litre, it is important to note that prices can vary across different regions and fuel stations within the state. Local market dynamics, supply agreements, and brand strategies can result in slight deviations from the state average. Nonetheless, Oregon generally maintains competitive diesel pricing compared to neighbouring states, offering lower prices to its residents and travellers.
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The limited market for fossil fuels is represented by Allowances from Oregon DEQ
The cost of diesel fuel in Oregon varies, with some gas stations offering diesel at $2.79 per gallon, while others offer it at $3.29 per gallon. On average, diesel prices in Oregon are cheaper than in California and Washington. However, there are indications that diesel fuel prices in Oregon may increase in 2025 due to changes in the market, including a reduction in the supply of renewable diesel and new regulations.
Oregon has implemented initiatives to reduce its dependence on fossil fuels and promote the use of cleaner and more sustainable energy sources. One such initiative is the Oregon Department of Environmental Quality's (DEQ) Clean Fuels Program (CFP), which aims to improve air quality, reduce greenhouse gas emissions, and provide consumers with affordable and sustainable fuel choices. The program encourages the use of FFVs and the expansion of access to E85 fuel in the state.
The DEQ's 2024 Clean Fuels Program rulemaking has received support from Growth Energy, the leading voice of America's biofuel industry. Growth Energy represents biofuel producers, businesses associated with the production process, and tens of thousands of biofuel supporters across the country. They commend the DEQ's leadership on carbon capture utilization and sequestration (CCUS) and its approval of Red Trail Energy LLC’s Tier 2 application, including CCUS.
The limited market for fossil fuels in Oregon is represented by the "Allowances" provided by the Oregon DEQ. The program, commonly known as "Cap and Invest" or "Cap at the Rack," caps the total fossil fuel allowed to be sold in the state. This creates a higher cost for diesel fuels refined from petroleum compared to renewable diesel and biodiesel. If a fuel seller cannot reduce their fossil fuel dependency, they need to purchase a CPP Allowance in a DEQ-curated market. These allowances are charged per gallon of fuel sold by regulated parties and can range from nothing to over $.50 per gallon. The revenue generated from selling these allowances is invested in reducing the future need for fossil fuels.
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The price of renewable diesel in Oregon will likely track the price in California
The price of diesel fuel in Oregon is dynamic and can vary across different gas stations. While exact prices could not be found, some sources indicate prices ranging from $2.79 to $4.99 per gallon for diesel fuel in Oregon.
In recent years, renewable diesel has gained popularity as a cleaner alternative to conventional diesel fuel. However, there is a disparity in the adoption of renewable diesel between Oregon and California. California leads the way in renewable diesel consumption, accounting for about 81% of the overall renewable diesel consumption in the United States. On the other hand, Oregon's consumption of renewable diesel is significantly lower, with the state accounting for less than 1% of the country's consumption.
This disparity can be attributed to several factors. Firstly, California has taken a proactive approach by implementing pioneering initiatives such as the Low Carbon Fuel Standard and the Advanced Clean Cars II (ACC II) program to decarbonize its most emission-intensive sectors. In contrast, Oregon has been slower to adopt renewable diesel, despite having similar programs in place, including the Clean Fuels Program and ACC II.
Another factor contributing to the disparity is the difference in market size and infrastructure between the two states. California has a larger market for renewable diesel, and it has made significant investments in storage, transportation, and production capacity. Oregon, on the other hand, has a smaller market and lacks the necessary infrastructure to support a higher adoption of renewable diesel. The state would need to invest in infrastructure development to accommodate the influx of renewable diesel and create favorable policies to incentivize its production and consumption.
Given the current trends and initiatives in California, it is likely that Oregon will follow suit in the adoption of renewable diesel. As Oregon works towards improving its infrastructure and creating incentives for renewable diesel, the price of renewable diesel in the state will likely track the price in California. This alignment in pricing will be influenced by market demands, policy changes, and the ongoing transition towards cleaner alternative fuels in both states.
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Biodiesel has a more widely used market development in the US than renewable diesel
The current average diesel price in Oregon is $3.991 per gallon. While diesel prices in Oregon are cheaper than in California and Washington, some gas stations in the state have reportedly switched from selling regular diesel to biodiesel.
Biodiesel and renewable diesel are both produced from the same renewable feedstocks, such as vegetable oils, animal fats, or used cooking oil. However, the market development of biodiesel and renewable diesel in the US has differed significantly in recent years. While biodiesel production grew steadily in the early 2000s, peaking at 1.8 billion gallons in 2018/19, it has since declined slightly to 1.7 billion gallons in 2022/23. On the other hand, renewable diesel production has experienced rapid growth, increasing from 40 million gallons in 2010/11 to 2.3 billion gallons in 2022/23, surpassing biodiesel production for the first time. This expansion is driven by federal and state policies aimed at reducing carbon emissions, as renewable diesel can be used as a substitute for petroleum diesel, unlike biodiesel, which is limited to blending at low levels.
The higher production cost of renewable diesel compared to petroleum diesel has been offset by policies such as the Blender's Tax Credit, which provides tax relief for blending biomass-based diesel. Additionally, renewable diesel does not have a blending ceiling like biodiesel, allowing for greater flexibility in its usage. The displacement of biodiesel by renewable diesel is evident in California, where blenders have utilized renewable diesel to meet emission targets due to the blending maximums for ethanol and biodiesel.
While biodiesel may have a more widely used market development in the US currently, the rapid growth and advantages of renewable diesel, such as its drop-in solution and significant GHG emissions reductions, indicate that the landscape for diesel production in the US is changing. The increasing demand for renewable diesel and the continued support from federal and state policies are likely to further shape the market development of these alternative fuels in the future.
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Frequently asked questions
The average price of diesel fuel in Oregon was $1.03 per liter between December 16, 2024, and March 24, 2025.
Diesel prices in Oregon are cheaper than in California by 91 cents.
Gas stations along I-5 in Oregon offer competitive diesel prices. Websites like GasBuddy.com provide real-time fuel price updates, helping you find the best prices in your area.
Yes, diesel fuel prices can vary across Oregon. For example, in March 2025, prices ranged from a minimum of $0.99 to a maximum of $1.06 per liter.
Diesel fuel in Oregon is, on average, cheaper than in Washington by 52 cents per liter.
