01:51 PM PST on Wednesday, March 31, 2004

By kgw.com and AP Staff

Gas prices in Oregon rose by almost three cents per gallon last month, while the national average price shot up five cents, according to the American Automobile Association.

In addition, AAA officials said drivers can expect another spike in gas prices before the start of the heavy summer driving season in June.

A car fills up in downtown Portland. (KGW Photo)

Experts blame the higher pump prices on expensive crude oil, rising demand, and low gasoline and oil supplies. In fact, OPEC said Wednesday that it will cut its production target by 4 percent -- a move that analysts say could drive crude oil prices higher even.

In Oregon, the statewide average is currently $1.83 for a gallon of regular unleaded gas. That's seven cents higher than the national average.

Drivers can find the state’s most expensive gas in the Eugene-Springfield area. There, gas costs an average of $1.85 a gallon.

The cheapest gas -- $1.78 a gallon -- is in Salem. Drivers can also find slightly cheaper gas across the Columbia River, in Vancouver at $1.77 a gallon.

There is little chance that gas prices, which have reached a record high nationally, will fall significantly in the near future, a national analyst said.

Increased demand will likely result from an improving economy, Memorial Day travel, and even the extra hour of light from daylight savings time, said Trilby Lundberg of the Lundberg survey, which regularly surveys 8,000 stations nationwide.

"The demand push this time of year is adding to supply tightness and therefore price," Lundberg said. "I don't see any recipe for substantial gasoline price cuts anytime soon."

San Diego has the highest gas prices in the country, at $2.12 for a gallon of regular unleaded. Los Angeles is close behind, at $2.10 for a gallon of regular unleaded.

Gasoline prices usually rise between March and May as refiners temporarily shut down their plants to prepare for the peak summer driving season, when special clean-burning blends of fuel are required. These shutdowns shrink supplies.

This year, the effect on price has been magnified because commercial gasoline inventories are already low. For the week that ended March 12, U.S. inventories stood at 199.6 million barrels, down from 202.1 million barrels a year ago.

What can drivers do?

"Consumers must get into the habit of reducing fuel consumption," said AAA Oregon Public Affairs Director Elliott Eki. "Slow down, avoid quick stops and starts, consolidate errands to minimize discretionary driving, make sure the vehicle is running efficiently, and watch for the best local prices."