Gas Prices by State (and How You Can Save)

Gas Prices by State (and How You Can Save)
Higher gas prices hit drivers hard following the COVID-19 pandemic in 2020 and the Russia-Ukraine war. Today, many drivers are paying the highest fuel prices since 2008, when the highest average gas price ever recorded by the American Automobile Association (AAA) was $5.02 per gallon. Unfortunately, driving is a necessity for many, so budgeting for higher gasoline prices must be done to meet these record highs. 

Gas prices by state

According to AAA, the national average at the gas station as of August 25, 2023, is $3.828. Generally, the highest prices are in the West and New England, with the lowest in the South.
Here’s a closer look at each state's average unleaded and diesel gas prices. 
State
Regular
Mid-Grade
Premium
Diesel
Alaska
$ 4.566
$ 4.718
$ 4.941
$ 4.399
Alabama
$ 3.419
$ 3.809
$ 4.185
$ 4.085
Arkansas
$ 3.433
$ 3.821
$ 4.178
$ 4.038
Arizona
$ 4.286
$ 4.582
$ 4.869
$ 4.535
California
$ 5.261
$ 5.476
$ 5.627
$ 5.764
Colorado
$ 3.992
$ 4.371
$ 4.671
$ 4.251
Connecticut
$ 3.810
$ 4.289
$ 4.676
$ 4.394
District of Columbia
$ 3.983
$ 4.545
$ 4.881
$ 4.523
Delaware
$ 3.672
$ 4.200
$ 4.480
$ 4.248
Florida
$ 3.734
$ 4.124
$ 4.444
$ 4.349
Georgia
$ 3.588
$ 3.989
$ 4.373
$ 4.240
Hawaii
$ 4.786
$ 4.993
$ 5.253
$ 5.723
Iowa
$ 3.612
$ 3.890
$ 4.356
$ 4.113
Idaho
$ 4.128
$ 4.342
$ 4.584
$ 4.641
Illinois
$ 4.100
$ 4.611
$ 5.037
$ 4.302
Indiana
$ 3.763
$ 4.264
$ 4.712
$ 4.442
Kansas
$ 3.588
$ 3.891
$ 4.180
$ 4.047
Kentucky
$ 3.513
$ 3.980
$ 4.388
$ 4.111
Louisiana
$ 3.392
$ 3.756
$ 4.121
$ 3.977
Massachusetts
$ 3.766
$ 4.279
$ 4.613
$ 4.371
Maryland
$ 3.748
$ 4.292
$ 4.583
$ 4.358
Maine
$ 3.834
$ 4.229
$ 4.619
$ 4.353
Michigan
$ 3.781
$ 4.277
$ 4.748
$ 4.367
Minnesota
$ 3.670
$ 3.997
$ 4.388
$ 4.180
Missouri
$ 3.523
$ 3.840
$ 4.159
$ 3.975
Mississippi
$ 3.300
$ 3.673
$ 4.016
$ 3.928
Montana
$ 3.990
$ 4.294
$ 4.584
$ 4.491
North Carolina
$ 3.534
$ 3.917
$ 4.287
$ 4.204
North Dakota
$ 3.739
$ 4.065
$ 4.356
$ 4.191
Nebraska
$ 3.613
$ 3.805
$ 4.236
$ 4.086
New Hampshire
$ 3.716
$ 4.122
$ 4.531
$ 4.256
New Jersey
$ 3.684
$ 4.226
$ 4.494
$ 4.320
New Mexico
$ 3.800
$ 4.173
$ 4.453
$ 4.280
Nevada
$ 4.474
$ 4.715
$ 4.954
$ 4.750
New York
$ 3.908
$ 4.357
$ 4.713
$ 4.578
Ohio
$ 3.510
$ 3.962
$ 4.413
$ 4.299
Oklahoma
$ 3.543
$ 3.861
$ 4.124
$ 4.007
Oregon
$ 4.730
$ 4.926
$ 5.152
$ 4.911
Pennsylvania
$ 3.889
$ 4.270
$ 4.577
$ 4.627
Rhode Island
$ 3.753
$ 4.362
$ 4.701
$ 4.340
South Carolina
$ 3.417
$ 3.808
$ 4.173
$ 4.082
South Dakota
$ 3.763
$ 3.928
$ 4.382
$ 4.156
Tennessee
$ 3.430
$ 3.825
$ 4.185
$ 4.130
Texas
$ 3.430
$ 3.823
$ 4.156
$ 3.919
Utah
$ 4.215
$ 4.446
$ 4.657
$ 4.621
Virginia
$ 3.640
$ 4.049
$ 4.390
$ 4.251
Vermont
$ 3.804
$ 4.211
$ 4.621
$ 4.305
Washington
$ 5.069
$ 5.300
$ 5.501
$ 5.395
Wisconsin
$ 3.612
$ 4.066
$ 4.490
$ 4.077
West Virginia
$ 3.669
$ 4.013
$ 4.342
$ 4.202
Wyoming
$ 3.938
$ 4.203
$ 4.480
$ 4.500
Source: AAA, August 25, 2023

Factors affecting gas prices

Gas prices are determined by several factors that can drive up or lower fuel cost. 

Oil prices 

The leading factor in determining gas prices is the price of crude oil, which, in turn, is dictated by supply and demand. According to the American Petroleum Institute (API), global crude oil costs account for 61% of the total price we pay for gas. Other factors include refining costs (14%), distribution and marketing costs (11%), and federal and state taxes (14%). Per the API, no central authority or group of people sets gas prices. Instead, gas prices depend on the decisions of many, including refiners, independent suppliers, wholesalers, and marketers. 

Customer demand 

The more demand for gas, the higher the prices will be. If customer demand holds steady or continues to increase, fuel prices will rise accordingly. However, given students start to return to the classrooms during the next two months, it’s possible demand could decrease as summer travel starts to decline. This could lead to lower gas prices in the coming months. 

Gas tax 

Gas taxes add to the price of fuel at both the federal and state level. The federal excise tax is 18.40 cents per gallon (CPG). At the state level, taxes range from approximately 9 CPG in Alaska to 51 CPG in California. Sales taxes also could be added by local and municipal governments. 

World events

Despite some claims that President Joe Biden’s administration is solely to blame for higher gas prices, there is a worldwide increased demand for fuel on a limited supply that is further exacerbated by the aggression of Russia into Ukraine. Russia is a major oil supplier, and because some countries stopped oil imports from Russia and some oil companies were divested from Russia, the world’s supply of crude oil was greatly reduced. This, of course, has led to higher gas prices as the world demand has not only continued but also increased. 

How to save money on gas

To save money on gas, improving your fuel economy is important. Try these tips to boost your fuel usage:
  • Don’t exceed the speed limit. 
  • Don’t “gas it and go.” Accelerate smoothly. 
  • Maintain a consistent speed whenever possible. Using your vehicle’s cruise control during long drives on the highway can help maintain speed.
Keeping your vehicle properly maintained also can reduce gas usage. This includes:
  • Keep tires properly inflated.
  • Make sure the air filter is clean.
  • Take your vehicle in for regular maintenance. 
  • Don’t warm up the car for too long when it’s cold out. 
  • Don’t run the air conditioner high for too long on hot days. 
  • Don’t haul around anything you don’t need. Less weight increases fuel efficiency. 

The bottom line

When it comes to gas prices, no one person, group, or authority can increase or decrease prices as they please. Instead, gas prices depend on several factors, most notably the price of crude oil and the supply and demand for gas. As a result, when gas prices escalate, drivers should improve their fuel economy to reduce how much gas they use. Doing so can not only bring relief to their wallets but also extend the life of their vehicle with improved care and maintenance. 

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