From Potholes to Politics: Why Oregon’s Gas Costs Keep Climbing

If you drive in Oregon, you’ve probably had at least one existential crisis at the pump—standing there, nozzle in hand, staring at the rapidly spinning price display and wondering if you missed your calling as a bicycle messenger.

It’s the type of moment that makes you feel as though you’re fueling up with liquid gold and paying dearly for the privilege. But why does Oregon, land of scenic coastlines and a thousand shades of green, also have to be the land of eyebrow-raising gas prices? You’d think with all the rain we get, we’d find some way to harness all that precipitation for energy. Instead, we’re left shelling out more than ever—like hamsters in a wheel, running faster but getting nowhere.

And now, because the pain at the pump isn’t quite enough, ODOT is stepping in with its palms up, politely asking for more of your hard-earned money to “fix” our roads and highways. It’s a bit like a restaurant that served you a questionable entrée last time, but now wants to charge extra for garnish. You’d think we’d have a reliable plan by this point—if only to keep the public from howling in protest every time a pothole rattles our hubcaps—but it seems the conversation always circles back to the same old tune: taxes, taxes, and more taxes. While we do need functioning roads (and fewer bent rims from crater-sized potholes), it’s worth pausing to ask whether this open-wallet policy is actually making the commute any smoother.

Which brings us to the heart of this little saga: If Oregon’s already paying top dollar for gas, who’s really benefiting? Are we simply funneling more cash into a well-intentioned but poorly managed system? Or could there be a smarter way to tackle our infrastructure woes without slamming yet another tax hike onto the folks who can least afford it? These questions don’t just nag at the mind; they poke at the very foundation of how we finance public goods in this state—and why you, dear driver, seem perpetually stuck paying the bill. So, buckle up. It’s time to peel back the layers of this endless money chase and find out what’s really fueling our prices at the pump.

---

Where Your Gas Money Actually Goes

When you swipe your card at the pump, you’re covering a whole buffet of costs. It’s not just the fuel itself; it’s also the cluster of taxes and fees piled onto every gallon:

• Federal Gas Tax (18.4 cents/gallon): The money heads off to the Highway Trust Fund, aimed at federal highways and transit. Whether that “aim” lands where it should is another story—just take a spin down some pothole-laden interstates.

• Oregon State Gas Tax (40 cents/gallon): In theory, this supports road maintenance, construction, and safety projects. In practice, the results can be inconsistent, like a chef who keeps burning the soufflé.

• Local Gas Taxes (varies): Certain cities or counties toss an extra layer of taxes on top. If you’re keeping score, that’s yet another slice off your income.

• Market Costs: Fuel companies base their prices on crude oil, refining, transportation, and good old supply-and-demand. Any hiccup—like a pipeline shutdown or an international kerfuffle—and prices go up faster than a balloon at a birthday party.

Don’t forget the extra fees, environmental surcharges, and specialized blends. Oregon requires particular fuel formulations to keep emissions in check—great for breathing cleaner air, but less great for your wallet. Then, add in the usual culprits: inflation, supply chain issues, and occasionally bizarre global politics.

All told, Oregon ends up landing near the top of the “expensive states for gas” list. High taxes, stringent regulations, and market fluctuations combine to make your fuel budget evaporate like a popsicle in the Sahara. So, if you’ve wondered why your gas money never seems to go as far as it used to, it’s because you’re essentially funding a small fleet of competing interests every time you fill up.

---

The Burden on the Most Economically Disadvantaged

For plenty of Oregonians, especially those scraping by paycheck to paycheck, gas prices aren’t just a talking point—they’re a real pain. If you have a tight budget and rely on your car to get to work, every price surge is like another jab to the gut. Sure, wealthier folks might float the bill more easily or opt for an EV, but a lot of people don’t have that luxury.

As fuel costs go up, so does the cost of just about everything else—groceries, household essentials, pizza delivery (if you’re lucky enough to afford takeout these days). Small businesses dealing with delivery or frequent travel have to pass on their rising costs to customers, which, ironically, circles right back to those same customers footing the bill at the pump.

It’s not exactly rocket science: higher taxes + higher prices = bigger financial strain on the folks with the fewest resources. That’s the kind of math even a third-grader could figure out—assuming the school has enough funding for textbooks. Meanwhile, some policymakers seem content to lean on the old fallback of raising fuel taxes again, which is a bit like trying to “fix” a squeaky door by making the house more expensive. Oregon’s infrastructure needs are real, but should the solution be to lean even harder on those who can least shoulder the cost?

---

Oregon vs. The Rest of the Nation

If you’re feeling singled out for suffering at the pump, rest assured—you’re not hallucinating. As of February 11, 2025, Oregonians are paying an average of $3.688 per gallon, while the national average hums along at $3.141. For a 15-gallon fill-up, that difference can buy you a couple of fast-food meals or a decent pile of groceries on sale.

Comparisons to our neighbors don’t exactly bring sunshine and rainbows. California is the reigning champion of high prices at $4.665 per gallon, with Washington tailing at $4.053. Meanwhile, some lucky souls in South Carolina cruise along at a breezy $2.866 per gallon. Oregon’s predicament is tied to a few factors:

1. Distance from Refineries: We rely heavily on imported fuel—often from California or Washington—where prices are already sky-high. The added transportation costs inevitably land on you.

2. Regulations & Fuel Blends: Oregon’s cleaner-burning fuel standards might be great for the environment, but they require more expensive refining processes. Good for your lungs, not so good for your wallet.

3. Taxes, Taxes, Taxes: While not the highest in the nation, Oregon’s state gas tax plus local levies can make your final bill climb like a cat caught in a tree. And if ODOT has its way, those costs could rise again.

So, the real question is: are we getting any decent return for all that money? Are roads smoother? Is traffic magically cured? Let’s just say the potholes around here aren’t shy. It’s enough to make you wonder where all that tax revenue actually ends up.

---

The $5.3 Billion Misstep: ODOT’s Accountability Problem

House Bill 2017 was pitched as a game-changer: $5.3 billion in new funding, new taxes to improve roads, and a promise of accountability. Eight years later, it’s clear the money flowed, but the oversight didn’t.

A Statesman Journal investigation uncovered glaring gaps in ODOT’s execution of HB 2017. Projects ran over budget, reports lacked consistency, and cost-benefit analyses—required by the law—often didn’t happen. Audits have revealed $1.1 billion in overestimated revenue, delays in nearly 30% of the reviewed projects, and an extra $200 million in unplanned costs. If this is what accountability looks like, Oregon drivers should be worried.

It’s one thing to miss your monthly grocery budget; it’s another to swing and miss on more than a billion dollars of taxpayer money. Yet that’s exactly what happened. According to the audit findings, ODOT based its revenue forecasts on overly optimistic assumptions about everything from economic growth to fuel consumption.

1. Inflated Traffic Projections: ODOT assumed traffic volumes would keep climbing, meaning more cars on the road to pay gas taxes. But telecommuting, more fuel-efficient vehicles, and the growing EV market took a hefty bite out of those rosy predictions.

2. Overreliance on Historical Averages: Think of it like relying on last year’s weather to plan your entire wardrobe—only for the climate to shift under your feet. By betting heavily on past data, ODOT ignored the possibility that trends (like pandemic-driven changes or shifts in commuting behavior) might deviate from the norm.

3. Failure to Factor in Market Fluctuations: Oil prices yo-yo like a caffeinated toddler on a trampoline, yet forecasts often treated them as if they were stable. When reality hit—sometimes in the form of geopolitical crises, sometimes in supply disruptions—projected tax revenues took a nosedive.

4. Neglected EV Impact: ODOT’s projection models didn’t fully account for electric vehicles displacing traditional gas-guzzlers, meaning fewer gallons sold and fewer dollars coming in. Combine that with federal incentives for EV purchases, and the gap between estimates and actual revenues got wider than I-5 at rush hour.

These compounding errors ballooned into a $1.1 billion overestimation, which left lawmakers and taxpayers scratching their heads—and picking up the pieces. Tracking the spending has been a challenge in itself. Auditors found 15% of HB 2017 funds initially unaccounted for, requiring an extensive paper chase to figure out where the dollars went. The public-facing project tracking website—supposed to help with transparency—is riddled with outdated figures, missing data, and contradictions. Some projects don’t even show up, while others post conflicting timelines and budgets.

The takeaway? HB 2017 was supposed to restore faith in how Oregon funds its roads. Instead, it’s become another case study in bureaucratic mismanagement. Before ODOT demands another dime from drivers, it should clean up the mess it’s already made.

---

So, If We Don’t Raise Revenue, Will the Roads Just Go Unfixed?

That’s the million-dollar (or multi-billion-dollar) question, isn’t it? The knee-jerk reaction when someone suggests not raising taxes is to picture highways crumbling into post-apocalyptic rubble. But the reality is a bit more nuanced.

1. Reprioritizing the Existing Budget:
   If Oregon reprioritized its current transportation funds—focusing on the most critical repairs and improvements first—the roads wouldn’t devolve into an obstacle course of potholes overnight. It’s not glamorous, but putting money where it’s truly needed, rather than spreading it around like peanut butter, is a practical start.

2. Efficiency Before Expansion:
   ODOT has a knack for jumping into big-ticket projects without tying up the loose ends on existing ones. Before we fund the next grand highway revamp, let’s finish and properly manage what’s already on the docket. By tightening the belt on administrative bloat, we can often free up enough cash to patch a few more lanes.

3. Focus on Congestion Relief:
   Throwing new lanes at every jammed intersection doesn’t always solve traffic woes. Improving public transit options, incentivizing telework, or staggering school and work hours can chip away at congestion without automatically digging deeper into drivers’ pockets.

Bottom line? Not raising revenue doesn’t mean highways will instantly transform into a demolition derby track. It does mean we’d have to be more creative—and more accountable—with the money we already have. If our transportation agencies start focusing on real efficiency and transparency, we can patch roads and relieve congestion without chasing the same old “just raise taxes” playbook.

---

The Real Question: Another Tax Hike or Real Accountability?

At some point, we all have to ask: Is another tax hike really the best remedy for Oregon’s transportation woes, or is it just another quick fix that burdens those who can least afford it? It might be time we demand better answers than the broken record we’ve been hearing. If ODOT wants more, maybe it’s time they earn our trust first.