The 5 States With the Lowest Gas Prices (2024)

The 5 States With the Lowest Gas Prices (1)

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If you're keeping a close eye on your household budget these days, you've undoubtedly made note of gasoline prices in your area. As of July 26, 2024, the average price of regular unleaded gas nationwide is $3.519. In some states, that average is much higher, and in others, it is lower.

Here, I'll let you know which five states have the lowest average gas prices, why prices vary so dramatically by region, and ways you can save on every gallon of gasoline you buy.

Five states with the lowest gas prices

Here's a table with the lowest average prices and how far they are below the national average.

State

Average cost per gallon

Percentage below national average

Mississippi

$2.989

15%

Louisiana

$3.071

13%

Tennessee

$3.082

12%

Arkansas

$3.119

11%

Oklahoma

$3.130

11%

Data source: AAA

Why gasoline prices are so much cheaper in some regions

When you compare the price of gas in these Southern states to states with much higher average gas prices, like Hawaii ($4.680), California ($4.652), and Washington ($4.248), it's easy to wonder why the discrepancy. How is it possible that gas prices can vary by so much?

According to the U.S. Energy Information Administration, four important factors determine how much you'll pay for gas, depending on where you reside.

  1. Distance from the gas supply: The farther gasoline must be transported from refineries, ports, pipelines, and blending terminals, the more it costs once it arrives at the point of sale.

  2. Supply disruptions: Any time something disrupts the gasoline supply, bidding for gasoline drives the cost up. For example, if a hurricane hits the U.S., causing a refinery shutdown or unexpected refinery maintenance, you can expect to see gas prices rise.

  3. Retail competition -- or lack of retail competition: You may have noticed higher gas prices at stations in remote areas. When a gas station has very little local competition, it can pretty much set any price it would like. Even in areas crowded with gas stations, those with the lowest operating costs can afford to charge less per gallon.

  4. Environmental programs: Environmental programs vary by state, with some states enforcing stricter standards to protect their citizens and the environment. It's typically states rated among the "least environmentally friendly" that offer the lowest gasoline prices.

Tips to save on gasoline, no matter where you live

Any time you can protect your personal finances by saving a few dollars, it's a good thing. Whether you're paying in cash or pulling out a credit card that rewards you for gas and grocery purchases, here are a few handy tips for saving money at the gas pump.

Sign up for rewards programs

Signing up for rewards programs through gas stations and, often, grocery stores can save money per gallon. For example, those who join the Circle K Inner Circle rewards program receive $0.25 off each gallon for their first five fill-ups. After that, they get $0.03 off per gallon, and once they spend $500 on any combination of fuel, food, and beverages, they're upgraded to a premium membership and enjoy $0.05 off each gallon.

Take advantage of a warehouse membership

If you're a member of Costco or Sam's Club, don't forget about the gas pumps available outside your local store. Filling up there can save real money over time. For example, the average cost of a gallon of gas at my local Circle K is currently $3.84. At Sam's Club, it's $3.42 per gallon, and I can fill up my tank at Costco for $3.41 per gallon.

Follow the apps

Either download a low-cost gas-finding app or check one of these sites online for a list of the cheapest gas in your area:

  • GasBuddy

  • Waze

  • Gas Guru

You can be sure that gas prices will rise and fall depending on what's happening in the world. Fortunately, you have the tools at your fingertips to locate the lowest price wherever you may be.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

The 5 States With the Lowest Gas Prices (2024)

FAQs

The 5 States With the Lowest Gas Prices? ›

Alaska has, by far, the lowest state tax (9 cents per gallon), followed by Mississippi (18.4 cents) and Hawaii (18.5 cents).

What state has the lowest price of gas? ›

Mississippi

What are the top 5 states with the highest gas prices? ›

Top 10 highest gas prices by state:
  • California – $5.39.
  • Hawaii – $4.72.
  • West Virginia – $4.69.
  • Washington – $4.65.
  • Nevada – $4.59.
  • Oregon – $4.42.
  • Alaska – $4.28.
  • Arizona – $4.10.

Which state has the lowest gas tax? ›

Alaska has, by far, the lowest state tax (9 cents per gallon), followed by Mississippi (18.4 cents) and Hawaii (18.5 cents).

What states have the lowest natural gas prices? ›

Top 10 States with the Cheapest Natural Gas Rates

States in the Gulf Coast region, such as Louisiana and Texas, benefit from proximity to major natural gas fields and infrastructure. These factors reduce transportation costs and supply chain complexities, leading to lower prices for consumers.

What state uses the least amount of gas? ›

Pennsylvania, New York and Massachusetts use the least gas. Washington currently has the most expensive gas, at $4.92 per gallon, on average. The national average price for gas as of mid-2023 is $3.64 per gallon. Mississippi has the cheapest gas in the nation.

How much is gas in Texas right now? ›

Texas average gas prices
RegularPremium
Current Avg.$3.052$3.830
Yesterday Avg.$3.058$3.837
Week Ago Avg.$3.066$3.838
Month Ago Avg.$3.157$3.910
1 more row

What states have the worst gas prices? ›

Average gas prices highest in California, lowest in Mississippi. As of July 19, 2024, the highest average gas price is in California ($4.71 per gallon). That's followed by Hawaii ($4.70) and Washington ($4.26). Source: AAA.

What are the top 5 gas producing states? ›

The top five states that produce the most natural gas are Texas, Pennsylvania, Louisiana, Oklahoma, and New Mexico.

What state sells the most expensive gas? ›

Most expensive US states for gas
  • California ($5.45)
  • Hawaii ($4.78)
  • Washington ($4.67)
  • Nevada ($4.63)
  • Oregon ($4.44)
  • Alaska ($4.37)
  • Arizona ($4.13)
  • Utah ($3.96)
Apr 22, 2024

Which state has the highest gas tax in 2024? ›

California pumps up its gas tax the most at 68.1 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (58.7 cpg). The lowest gas tax rates are levied in Alaska at 8.95 cpg, followed by Mississippi (18.4 cpg) and Hawaii (18.5 cpg).

What is Florida's gas tax? ›

Gas Tax by State
StateGasoline Tax
Delaware$0.23 / gallon
District of Columbia$0.235 / gallon
Florida$0.36525 / gallon
Georgia$0.323 / gallon
47 more rows

What state has the highest taxes? ›

In fact, the states with the highest tax in the U.S. in 2021 are:
  • California (13.3%)
  • Hawaii (11%)
  • New Jersey (10.75%)
  • Oregon (9.9%)
  • Minnesota (9.85%)
  • District of Columbia (8.95%)
  • New York (8.82%)
  • Vermont (8.75%)

Where is gas cheapest at what state? ›

Wyoming has the cheapest gasoline prices in the U.S., where the average cost is $2.63 per gallon. However, the state ranks 15th in diesel prices at $3.64. Oklahoma leads in least expensive diesel prices at $3.38 per gallon. Utah has the second-cheapest gas, with the average cost hitting $3.54 per gallon.

Who controls gas prices in the USA? ›

Petroleum prices are determined by market forces of supply and demand, not individual companies, and the price of crude oil is the primary determinant of the price we pay at the pump.

What state has the most expensive utilities? ›

Nationwide Americans spend an average of $429.33 per month on utilities. Here are a few other findings: Hawaii has the highest monthly energy bill at $177.78 and Utah has the lowest at $80.87. California has the highest monthly water bill at $77 and Wisconsin and Vermont tied for the lowest at $18.

Where is the cheapest gas in the world? ›

Countries with the lowest petrol prices, 2024
RankCountryGasoline prices (liter, U.S. Dollar)
1Iran0.029
2Libya0.031
3Venezuela0.035
4Algeria0.342
156 more rows
Jan 7, 2024

How much is a gallon of gas in Florida? ›

Gas Prices in Florida
PriceStationAddress
3.14Sam's Club 2575 Gulf-to-Bay Blvd Clearwater Jul 30,6:32 AM2575 Gulf-to-Bay Blvd
3.14BJ's 26996 US-19 Clearwater Jul 29,4:02 PM26996 US-19
3.16Sam's Club 7001 Park Blvd Pinellas Park Jul 29,11:08 PM7001 Park Blvd
3.16Sam's Club 4600 US-98 N Lakeland Jul 29,3:39 PM4600 US-98 N
6 more rows

What state has the highest gas prices in 2024? ›

On July 4, 2024, the price of regular gasoline was highest in California, at around 4.79 U.S. dollars per gallon.

Why is California gas so expensive? ›

That's not an anomaly — Californians consistently pay more for gas than the rest of the country. A confluence of factors join together to increase the price of gas in The Golden State, including environmental restrictions, higher taxes and a shrinking number of regional refineries.

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