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What State Has the Cheapest Gas? Gas Prices by State

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Fuel prices spiked to an all-time high in 2022, reaching $5.01 per gallon as a US average on June 14. Then after what seemed like a never-ending rise, gas prices fell all through the month of July, much to the relief of ordinary folks across the country. Nevertheless, gas prices are still significantly higher than they were at the start of the year. Pain at the pump is comparatively less in some states, though. So what state has the cheapest gas? And what state has the ignominy of having the country’s most expensive gas prices? Here’s what’s happening with gas prices in America.

Which state has the cheapest gas?


According to AAA.com, which updates gas prices on a daily basis, Texas has the cheapest gas prices in the country. The average price of a gallon of regular gas costs only $3.761 in Texas.

Which state has the most expensive gas?


California has the highest gas prices in the country. The average price of a gallon of regular gas is $5.64 in California.

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Why is gas cheap in Texas?

There are two basic reasons why gas is cheap in Texas – low fuel taxes and proximity to major oil refineries.

Texas doesn’t just produce a huge part of the nation’s oil.  It also has far more refining capacity than any other state. That means they have shorter supply lines and logistical chains.

Now we come to taxes. All businesses involved in creating and distributing petroleum in Texas pay reduced taxes. So those who produce it, transport it, and sell it pass those savings on to Texas consumers.

There’s also another aspect to consider. Texans consume a whole lot of gas. Texas is HUGE and has considerably more freeways than any other state. Texans love their rides! So they’ve no problem traveling dozens of miles to work or hundreds of miles to see relatives in different regions of the state. The state makes up for the lack of per-gallon taxes by selling more gasoline.

Why is gas expensive in California?

California’s high average gas price is remarkable!  The state has the most automobiles of any state and some of the nation’s longest commuting times.

The state excise gas tax in California is one of the major factors driving the high price. According to data from the American Petroleum Institute, Californians pay more than 68 cents a gallon in state excise taxes and other state fees and taxes than any other state.

California’s sales tax on gas, already the second-highest in the country at 51.1 cents per gallon, rose by roughly 3 cents on July 22.

Some relief may be in sight for Californians, though. Legislators and Gov. Gavin Newsom have reached an agreement to return $9.5 billion to Californians who are feeling the pinch of $6 gasoline and rising prices for food and other goods and services. Under this gas tax relief, several Californians will receive up to $1,050. This may not happen immediately, though. But you can expect it to happen around fall.

Another reason why gas is costlier in Cali is because of gasoline environmental regulations. Gas stations are required to offer a cleaner gasoline blend that few refineries outside of California manufacture, making it difficult to get fuel when it is scarce.

Breaking down gas prices across states

Western and Pacific states have the highest gas prices in the US, with California, Hawaii ($5.58), Alaska ($5.14), Nevada ($5.10), and Oregon ($5.09) having the highest costs. Of course, pricing might vary significantly within a state or even within a city. This depends on variables such as local competition or the availability of pipelines and refineries.

If you want to discover cheaper costs, you should travel out to the South. That’s where the five states that have the cheapest average gas prices are located. Texas, South Carolina ($3.78), Georgia ($3.80), Mississippi ($3.82), and Arkansas ($3.83) are states that have the cheapest gas prices in the country.

What’s happening with gas prices right now?

The national average for a gallon of regular gasoline has dropped eight cents to $4.27 during the last week of July 2022. According to the latest figures from the Energy Information Administration (EIA), gas demand increased last week from 8.52 million b/d to 9.25 million b/d. The projected rate is 80,000 b/d lower than last year. But if the current trend continues, it might put pressure on pump prices and halt price declines. Furthermore, total domestic gasoline stockpiles fell by 3.3 million barrels to 225.1 million barrels, indicating that increased demand lowered inventory last week.

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How to save on car costs as gas prices rise

Way.com is aware that people in the United States are looking for methods to save money at the gas pump, especially in the current climate. Therefore, we are doing all in our power to save them money on petrol at each and every fill-up. We’ve collaborated with PDI and Shell on the Fuel Rewards® program, which will bring about continued cost savings.

Way collaborated on the initiative with PDI, the software firm that powers the Fuel Rewards® program. This allows users to earn gas discounts by filling up at Shell and other brands that participate in the Fuel Rewards® program.

Way+ subscribers who are Fuel Rewards® program members can save 30 cents per gallon on their first fill-up (up to 20 gallons). After that, they save 5 cents per gallon at any Shell station.

Here’s more info on top-rated airport parking, the best parking spots in your city, affordable auto insurance, easy auto refinance, and high-quality car washes near you.

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