Who Pays The Highest Average Gasoline Prices Per State?
The COVID-19 pandemic has shut the doors of international travel so many Americans are packing up their cars and heading out to discover the beauties of their own proverbial backyards. As you plan your road trip, you probably want to stay on top of your expenses – an obvious one being the cost of gas. If you don’t yet know how to calculate your gas cost per mile, what’s the national average gas price, and how does it vary across states – don’t worry. We are here to help.
Importance Of Calculating Gasoline Price And How It Is Done
Knowing your gas mileage can help you become more efficient and save money each time you drive. It’s quite simple and involves some very basic calculations.
The first thing you need to figure out is your car’s Miles per Gallon (MPG):
- Fill up your gas tank all the way
- Reset the trip odometer
- Drive around as normal until you deplete the fuel (until you get to “E”)
- Now divide the total gallons your car holds by the miles you’ve driven
For example, 400 miles traveled on 20 gallons of gas = 20 miles per gallon (mpg).
The next step is to calculate your Gas Cost Per Mile:
- Divide the gas price per gallon by your MPG
For example, let’s use the national average price of gas in the United States – $2.58 divided by 20 mpg = $0.13 per mile
Finally, multiply this with the total miles you are planning to drive and you will know exactly how much should you expect to spend on your trip. Bon, voyage!
What States Have Cheapest And Most Expensive Gas Prices?
Have you ever wondered why a full tank in Ohio costs you a lot less than in California? Similar to the average electricity rates, gasoline prices also vary in each U.S. state. The reason is a combination of state and local taxes, different gasoline blends, retail competition, and operating costs.
Which state has the most expensive ride? Not surprisingly, it’s California where statewide regulations on gas and carbon emissions push the regular gasoline prices to nearly $4/gallon. California’s unique blend of gasoline is hard to come by so if one of its refineries experiences operating problems, California’s gasoline prices can increase substantially statewide.
States With Most Expensive Average Gas Prices
| Rank | State | Regular | Mid-Grade | Premium | Diesel |
|---|---|---|---|---|---|
| 1 | California | $3.90 | $4.08 | $4.20 | $4.03 |
| 2 | Hawaii | $3.65 | $3.84 | $4.07 | $4.23 |
| 3 | Washington | $3.33 | $3.54 | $3.70 | $3.31 |
| 4 | Nevada | $3.31 | $3.52 | $3.69 | $3.31 |
| 5 | Oregon | $3.17 | $3.34 | $3.53 | $3.20 |
| 6 | Utah | $3.16 | $3.32 | $3.50 | $3.51 |
| 7 | Alaska | $3.12 | $3.27 | $3.43 | $3.01 |
| 8 | Arizona | $3.10 | $3.37 | $3.63 | $3.15 |
| 9 | Idaho | $3.05 | $3.22 | $3.41 | $3.40 |
Who pays the least? That would be Mississipi where drivers only need to fork out an average of $2.60/gallon. The Mississipi gas prices might be the envy of the drivers elsewhere in the U.S. where gas is expensive.
States With Least Expensive Average Gas Prices
| Rank | State | Regular | Mid-Grade | Premium | Diesel |
|---|---|---|---|---|---|
| 1 | Kansas | $2.66 | $2.91 | $3.14 | $3.04 |
| 2 | Oklahoma | $2.66 | $2.91 | $3.14 | $2.97 |
| 3 | Missouri | $2.65 | $2.90 | $3.17 | $2.95 |
| 4 | Wisconsin | $2.65 | $2.96 | $3.35 | $2.96 |
| 5 | North Carolina | $2.64 | $2.96 | $3.28 | $2.93 |
| 6 | Louisiana | $2.63 | $2.93 | $3.23 | $2.77 |
| 7 | Texas | $2.62 | $2.93 | $3.22 | $2.85 |
| 8 | South Carolina | $2.61 | $2.93 | $3.24 | $2.85 |
| 9 | Ohio | $2.61 | $2.92 | $3.25 | $3.08 |
| 10 | Mississippi | $2.60 | $2.89 | $3.21 | $2.77 |
Gasoline Price Comparison By State
According to the Energy Information Administration (EIA), the national average retail gasoline price per gallon was $2.587 in February 2021. Let’s compare this to the average cost in each of the 50 U.S. states.
| State | Regular | Mid-Grade | Premium | Diesel |
|---|---|---|---|---|
| California | $3.90 | $4.08 | $4.20 | $4.03 |
| Hawaii | $3.65 | $3.84 | $4.07 | $4.23 |
| Washington | $3.33 | $3.54 | $3.70 | $3.31 |
| Nevada | $3.31 | $3.52 | $3.69 | $3.31 |
| Oregon | $3.17 | $3.34 | $3.53 | $3.20 |
| Utah | $3.16 | $3.32 | $3.50 | $3.51 |
| Alaska | $3.12 | $3.27 | $3.43 | $3.01 |
| Arizona | $3.10 | $3.37 | $3.63 | $3.15 |
| Idaho | $3.05 | $3.22 | $3.41 | $3.40 |
| Illinois | $3.04 | $3.38 | $3.77 | $3.14 |
| District of Columbia | $3.04 | $3.51 | $3.64 | $3.20 |
| Pennsylvania | $3.00 | $3.31 | $3.59 | $3.38 |
| New Jersey | $2.94 | $3.28 | $3.45 | $3.17 |
| New York | $2.91 | $3.20 | $3.43 | $3.16 |
| Colorado | $2.90 | $3.22 | $3.51 | $3.09 |
| Wyoming | $2.90 | $3.13 | $3.37 | $3.22 |
| Connecticut | $2.89 | $3.19 | $3.40 | $3.15 |
| Florida | $2.88 | $3.22 | $3.52 | $3.00 |
| New Mexico | $2.86 | $3.16 | $3.42 | $3.18 |
| South Dakota | $2.85 | $2.95 | $3.30 | $3.14 |
| Maine | $2.82 | $3.11 | $3.36 | $3.07 |
| Maryland | $2.80 | $3.23 | $3.47 | $3.06 |
| Vermont | $2.80 | $3.04 | $3.31 | $3.04 |
| Nebraska | $2.80 | $2.90 | $3.24 | $3.07 |
| Rhode Island | $2.79 | $3.11 | $3.36 | $3.03 |
| Iowa | $2.77 | $2.92 | $3.33 | $3.08 |
| North Dakota | $2.77 | $2.98 | $3.20 | $3.12 |
| West Virginia | $2.77 | $3.05 | $3.34 | $3.03 |
| Massachusetts | $2.76 | $3.04 | $3.26 | $3.01 |
| Minnesota | $2.74 | $2.95 | $3.27 | $3.08 |
| New Hampshire | $2.73 | $3.02 | $3.29 | $2.94 |
| Virginia | $2.73 | $3.09 | $3.39 | $2.92 |
| Georgia | $2.72 | $3.04 | $3.36 | $2.96 |
| Montana | $2.72 | $2.99 | $3.25 | $3.10 |
| Delaware | $2.71 | $3.11 | $3.34 | $3.04 |
| Michigan | $2.71 | $3.01 | $3.33 | $3.05 |
| Arkansas | $2.68 | $2.98 | $3.27 | $3.00 |
| Kentucky | $2.68 | $3.00 | $3.31 | $2.94 |
| Indiana | $2.67 | $2.98 | $3.30 | $3.16 |
| Tennessee | $2.67 | $2.99 | $3.33 | $2.90 |
| Alabama | $2.66 | $2.98 | $3.30 | $2.89 |
| Kansas | $2.66 | $2.91 | $3.14 | $3.04 |
| Oklahoma | $2.66 | $2.91 | $3.14 | $2.97 |
| Missouri | $2.65 | $2.90 | $3.17 | $2.95 |
| Wisconsin | $2.65 | $2.96 | $3.35 | $2.96 |
| North Carolina | $2.64 | $2.96 | $3.28 | $2.93 |
| Louisiana | $2.63 | $2.93 | $3.23 | $2.77 |
| Texas | $2.62 | $2.93 | $3.22 | $2.85 |
| South Carolina | $2.61 | $2.93 | $3.24 | $2.85 |
| Ohio | $2.61 | $2.92 | $3.25 | $3.08 |
| Mississippi | $2.60 | $2.89 | $3.21 | $2.77 |
Which States Have The Most Increase In Gasoline Price?
Gasoline prices are very volatile. They usually follow crude oil prices and the level of gasoline supply relative to gasoline demand. In other words, if a lot of oil is produced, but not as many people need it, the price is low.
Are gas prices going up in your state? Let’s look at the 15 states with the highest increase in average gas prices between February and March 2021.
| Rank | State | Price in Feb 2021 | Price in March 2021 | Difference | % Difference |
|---|---|---|---|---|---|
| 1 | Utah | $2.50 | $3.15 | $0.65 | 25.9% |
| 2 | Idaho | $2.59 | $3.04 | $0.45 | 17.4% |
| 3 | Wyoming | $2.56 | $2.90 | $0.34 | 13.4% |
| 4 | Florida | $2.61 | $2.87 | $0.26 | 10.1% |
| 5 | Nevada | $3.01 | $3.31 | $0.30 | 10.0% |
| 6 | Colorado | $2.64 | $2.90 | $0.26 | 9.8% |
| 7 | Mississippi | $2.38 | $2.59 | $0.22 | 9.1% |
| 8 | Louisiana | $2.41 | $2.63 | $0.22 | 9.0% |
| 9 | Arkansas | $2.47 | $2.68 | $0.21 | 8.7% |
| 10 | New Mexico | $2.63 | $2.85 | $0.23 | 8.6% |
| 11 | Montana | $2.51 | $2.72 | $0.21 | 8.5% |
| 12 | Alaska | $2.88 | $3.12 | $0.24 | 8.4% |
| 13 | Missouri | $2.45 | $2.65 | $0.20 | 8.0% |
| 14 | Texas | $2.42 | $2.61 | $0.19 | 7.9% |
| 15 | Alabama | $2.46 | $2.66 | $0.19 | 7.8% |
Who Controls The Price Of Gasoline?
So far we have established that the average gas prices vary a lot – both in time and by state. The biggest driver is the price of crude oil – the raw material from which gasoline is produced. More than half of the retail gasoline price is dependent on the fluctuations of crude oil.
The production and exportation of crude oil are limited to few countries – Saudi Arabia, UEA, Iran, Iraq. Kuwait, Russia, and Venezuela). When the demand for oil goes down, these countries can jointly decide to cut production in order to maintain the oil price on the same level. If they don’t, the price falls.
Last year during the onset of the COVID-19 pandemic, the demand for oil dropped rapidly (due to significantly reduced transportation needs). Saudia Arabia and Russia both decided not to cut the production, sending the U.S. gas price down by 60% in April 2020.
Each state imposes a different excise tax on regular gasoline, accounting for another 17% of the final price. Finally, there are additional costs to refine, transport, and sell gas at retail outlets.
Gasoline Tax By State
As a motorist, you are probably aware that you pay federal, state, and local taxes in order to enjoy the ride. If you think that that’s a bit excessive, think of all the state infrastructure projects (roads, bridges) that have to be created for you to drive on the road. Roads have to be maintained and bridges checked for safety – your gas taxes help to pay for that.
The federal government charges a tax of 18.4 cents on every gallon of gasoline and 24.4 cents on every gallon of diesel. Which state has the highest gas tax? According to the American Institute of Petroleum, until recently it was Pennsylvania at 77.10 cents per gallon but at the beginning of 2021, it got overtaken by California with whooping 81.45 cents per gallon.
How To Reduce Gasoline Consumption
With those gas prices by state going up and down, you probably want to make a full tank last as long as possible. The good news is that there are ways to reduce fuel consumption – some as straightforward as ensuring your car is maintained properly.
Driving Habits
Don’t Carry Unnecessary Weight
A lighter car will use less fuel, so now it’s time to take out the tent, foldable chairs, and sports equipment you’ve been driving around with.
Stay Aerodynamic
At high speed, wind resistance increases your fuel consumption so try to keep your windows closed and remove the roof-top cargo box if you don’t need it for the trip – this alone can save as much as 20% on fuel over a year.
Remember Maintenance and Check Tire Pressure
Get your car serviced regularly to maintain engine efficiency levels and don’t forget to check your tire pressure often – driving with under-inflated tires can increase fuel consumption by 4% and will likely result in having to replace them early.
Avoid Idling Your Vehicle
Unless you are waiting at traffic lights, turn off your engine if you need to stay idle for more than 60 seconds. The average vehicle with a 3-liter engine wastes 300 milliliters (over 1 cup) of fuel for every 10 minutes it idles.
Drive Less
We know, easier said than done. However, if this past year has taught us anything, it’s that traveling less is possible. If you have the option, work from home at least once a week. Use public transport instead of your car – in big cities with congested roads, that’s often the faster option anyways. Driving less will be good not only for your wallet but also for the environment.
Choosing Your Car
Of course, buying a new car isn’t something you can just do whenever you want. However, if your car is due for an upgrade, do your research and invest in a fuel-efficient option. The results can be significant. According to ConsumerReports.org, save about $315 per year in fuel costs by purchasing a Toyota Sienna minivan instead of the Dodge Grand Caravan.
Alternatives for Regular Gasoline
Gas-powered cars are getting increasingly more efficient thanks to advances in engine technology, better aerodynamics, and clever computer controls. However, more and more U.S. drivers are showing interest in alternatives for regular gasoline – hybrids, diesel, and electric vehicles.
Diesel For SUVs and Trucks
According to studies, diesel engines were 29 percent more efficient on the highway and 24 percent more efficient in the city. Diesel cars also get a bad rep for being particularly harmful to the environment. You might recall the 2015 Volkswagen scandal when the car company was found to be cheating car emissions tests in the United States. However, modern diesel cars don’t have this problem anymore as the filters clean up 99% of the particles.
Electric Vehicles
Some people say that plug-in hybrids and fully electric vehicles (EVs) are the future. In terms of saving money at the pump, EVs get you out of paying for gas altogether – you can plug in at home and if you also have a solar panel and a decent-size battery, you are powering your car for free. However, outside of the Tesla models and the Chevrolet Bolt, EVs have a limited driving range. The other problem is the cost. All data indicate that the true electric revolution is still a few years away.
FAQs
How Much Does A Person Spend On Gas A Year?
An average U.S. motorist drives around 13,500 miles every year which translates to nearly $3,000 per year spent on gas. However, there are big gaps in regular gasoline prices by state – Californian drivers pay an average price of $3.90 per gallon while in Alabama it’s just $2.46 / gallon.
Is Premium Gasoline A Good Choice?
The difference between regular and premium gasoline is in the octane rating – gas’s capacity to withstand compression before it detonates. However, the majority of cars on the road today are optimized to run on regular gas, and filling up with premium won’t add any benefits and will cost you an extra 50 cents per gallon.
How Much Does A Person Spend On Gas A Year?
An average U.S. motorist drives around 13,500 miles every year which translates to nearly $3,000 per year spent on gas. However, there are big gaps in regular gasoline prices by state – Californian drivers pay an average price of $3.90 per gallon while in Alabama it’s just $2.46 / gallon.
Is Premium Gasoline A Good Choice?
The difference between regular and premium gasoline is in the octane rating – gas’s capacity to withstand compression before it detonates. However, the majority of cars on the road today are optimized to run on regular gas, and filling up with premium won’t add any benefits and will cost you an extra 50 cents per gallon.
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