BEND, OR -- With the cost of oil nearly double what it was last summer, prices at the pump continue to rise. The national average hit $5.02 this week - the first time ever it’s topped $5 a gallon. "And, of course, that’s old news to those of us in Oregon," says AAA's Marie Dodds, "We’ve been above the $5 gallon mark for some time now, and our current average is $5.54." Bend's average jumped a whopping 13 cents this week, to $5.63 a gallon. 

Dodds says a number of factors are pushing prices higher, in addition to the war in Ukraine, "You have crude oil prices, which are about twice as expensive as they were last summer." Crude oil continues to hover around $120 a barrel. Dodds adds, "You have reduced refining capacity, here in the US." That's because many refineries that shut down when demand tanked during the pandemic have not restarted. "And, you have very strong demand for gas in the US." That demand, she says, isn't expected to decline this summer. "Normally, we would expect demand destruction really when the national average gets above $3.75 a gallon and, of course, we’re well above that now. We really haven’t seen demand for gas fall off."

At least we can be glad we’re not in California: Drivers there are paying more than $6 a gallon.