Latest issuePGE wants a 4.8% rate hike, and Oregon's gas tax money is shrinkingRead now

← Salem news

RoadsThursday, November 12

Oregon's gas tax revenue is down 2.2% this year, ODOT says

The Daily Salem teamFrom today’s edition · 1 min read · 2 sources

ShareEmailFacebookX

Oregon's gas tax money is shrinking. The Oregon Department of Transportation says motor fuel tax revenue is down 2.2% in the first nine months of 2026 compared with the same stretch last year. Gas use in the state peaked in 2018 and has slipped since.

2.2%drop in motor fuel tax revenue, first nine months of 2026

officials said Friday the long-predicted decline is officially here.

Sources: 1430 KYKN, KTVZ

The state gas tax is 40 cents a gallon with no scheduled increases, so it stays flat unless the Legislature acts. KTVZ reports that higher fuel prices this year, particularly since the war in Iran began this spring, sped up the drop.

“Transportation agencies at the city, county and state level across Oregon will now have fewer dollars to maintain and improve the transportation system.”

Travis Brouwer, ODOT deputy director
  • Plug-in and electric vehicles registered in Oregon: more than 140,000
  • Average Oregon car: over 25 mpg, up from 21 in 2016

Oregon's gas use peaked in 2018 and revenue likely peaked in 2025

  1. 2018Gasoline consumption in Oregon peaked.
  2. 2020A two-cent gas tax increase was in place for the year.
  3. 2022Another two-cent gas tax increase was in place for the year.
  4. 2024A third two-cent gas tax increase was in place for the year.
  5. 2025Gas tax revenue likely peaked.
  6. 2026Motor fuel tax revenue is down 2.2% through the first nine months.

Sources: 1430 KYKN, KTVZ

Sources: 1430 KYKN, KTVZ

Read it in the full edition

More from today’s edition

Read the edition
All getting around news
  1. Central Oregon Daily13 hours ago

    Oregon warns transportation cuts could increase traffic deaths, cut public transit, on Central Oregon Daily

    Oregon transportation officials say the state's funding crisis could have far-reaching impacts, including transit cuts, stalled construction projects and the elimination of passenger rail service. A workgroup appointed by Gov. Tina Kotek is now weighing options to close the budget gap.