SALEM, Ore. — Oregon is beginning to see a decline in gasoline tax revenue as drivers increasingly use more fuel-efficient vehicles and electric cars.
The Oregon Department of Transportation reported that motor fuel tax revenue was down 2.2 percent during the first nine months of 2026 compared with the same period last year.
Transportation officials say gasoline consumption in Oregon peaked in 2018 and has gradually declined.
The state now has more than 140,000 plug-in and electric vehicles registered, while the average vehicle gets more than 25 miles per gallon, compared with approximately 21 miles per gallon a decade ago.
ODOT officials say the declining revenue creates additional challenges for maintaining highways, repairing roads and supporting transportation projects throughout Oregon.
The state gasoline tax currently stands at 40 cents per gallon, with no additional scheduled increases.
