Northwest gas prices keep rising as nationwide costs decline

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buy this photo Rick Bowmer Northwest gas prices keep rising as nationwide costs decline

Bucking a national trend, gas prices across the West Coast have remained high past Labor Day weekend, though an analyst sees relief around the corner.

Washington and Oregon both are among the states with the most expensive gas nationwide, averaging $2.97 and $2.87 per gallon, respectively, according to AAA.

Both states have seen prices rise since the beginning of the month while prices have declined in the rest of the country.

The average price in the Longview-Kelso area Thursday was $2.97 a gallon, with some stations charging as much as $3.08, according to Internet surveys. Prices have continued to hover around $3 per gallon after Labor Day, when they traditionally fall as the summer driving season ends.

A West Coast fuel shortage this fall has led to higher prices, said Marie Dodds, spokeswoman for AAA Oregon. A major California refinery went down for unplanned maintenance this summer, she said.

“Because of the supply issue, our prices did not decrease,” Dodds said.

Over the past two weeks, West Coast production has picked up, she said. “Prices appear to be softening.”

At the same time, more drivers are hitting the road, according to the Washington State Department of Transportation.

Last summer, with gas price jumping as high as $4.50 per gallon, statewide traffic volume fell about 4 percent. This summer, the number of cars on the road rose 3 percent above average, a jump of seven points over last year, according to WSDOT.

“It’s a pretty big change, compared to last summer,” said Annie Linstrom, WSDOT spokeswoman.

Crude oil prices took a $3 hit Thursday, closing at $66 per barrel. Investors fear the economy is not turning around after a report showed that home sales nationwide fell in August for the first time in four months, according to media reports.

However, Dodds warned, when the economy does improve, oil speculators will start betting on increased fuel consumption.

“When the economy rebounds, fuel prices will likely rebound as well,” Dodds said.

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