Gas prices fluctuate from state to state due to factors such as local taxes, environmental regulations, reliance on local production or imports, and the proximity of refineries.
In this infographic, we use data from the American Automobile Association (AAA) to illustrate the cost of fueling a vehicle in each U.S. state.
Tax Breaks and Environmental Regulation
According to the AAA, the national average price of regular unleaded gas was $3.54 per gallon as of October 25, 2023.
There are 29 states where gas prices are below the national average. Georgia, where the government has suspended the gas tax to help the population deal with inflation, has the cheapest fuel right now.
Proximity to refineries is a major contributing factor to prices. States like Texas, Louisiana, Mississippi, and Alabama often have lower prices than other regions.
Meanwhile, West Coast states dominate the list of jurisdictions with more expensive gas. With high local taxes and a unique gasoline blend designed to reduce emissions but which increases prices, California tops the list.
When it comes to fuel taxes, California leads with 77.90¢ per gallon.
Alaska has the cheapest gas tax rates, at 8.95 cents per gallon.
When Will Gas Prices Go Down?
Despite global tensions and concerns that conflict in the Middle East could escalate, gas prices typically decline in the autumn months.
For example, U.S. crude oil futures have risen about 5% since the Israel-Hamas war started earlier this month, while the national average retail gasoline cost is actually $0.34 lower than September’s $3.88.
This is because gasoline prices often rise during peak driving seasons, such as summer, when more people embark on road trips and travel. In addition, gas stations switch to a less expensive winter blend of gasoline after September.
According to AAA, gas prices will likely continue to drop until the end of the year.
