Gas Prices by State: A Complete Breakdown

01 Introduction

Gasoline prices in the United States are not uniform. A driver in California can pay over $4.40 per gallon while a driver in Texas pays under $2.55 for the same grade of regular unleaded fuel. That difference of nearly $1.90 per gallon adds up to hundreds of dollars per year for the average driver.

The price you pay at the pump is determined by four components: the cost of crude oil (roughly 50 to 60% of the total), refining costs and margins, distribution and marketing, and taxes. For a broader look at how these components combine into the real cost of driving in America, see our overview article. While crude oil prices are set globally, the other three components vary significantly by state and region.

This article examines the structural factors that create persistent state-level price differences, using data exclusively from the Federal Highway Administration (FHWA) and the Energy Information Administration (EIA). These patterns hold year after year regardless of whether overall prices are high or low.

02 Why Gas Prices Vary by State

Three government-documented structural factors explain the majority of state-to-state gasoline price differences. These factors are embedded in geography, law, and infrastructure, which is why state price rankings remain remarkably stable over time.

State and local fuel taxes. Every gallon of gasoline sold in the United States includes a federal excise tax of 18.4 cents per gallon. On top of that, each state levies its own fuel tax, ranging from 8.0 cents in Alaska to 57.6 cents in Pennsylvania. Some states also apply additional fees, sales taxes, or underground storage tank fees. The combined tax burden can differ by nearly 50 cents per gallon between the lowest-tax and highest-tax states.

Proximity to refineries. The Gulf Coast (PADD 3), home to roughly 50% of U.S. refining capacity, consistently has the lowest gasoline prices in the country. States farther from refining centers pay more due to transportation costs. The West Coast is particularly affected because pipeline connections from Gulf Coast refineries to the West are limited, and California's refineries face unique capacity constraints.

Fuel formulation requirements. The EPA requires certain metropolitan areas to use reformulated gasoline (RFG) to reduce air pollution. California maintains its own fuel standard (CARB gasoline) that is even stricter. These specialized fuel blends cost more to produce and limit the number of refineries that can supply them, contributing to higher prices in states with RFG requirements. Diesel fuel faces a separate set of pricing dynamics, including a persistent premium over gasoline that has widened since 2005.

03 State Fuel Tax Rates

The federal government collects a flat 18.4 cents per gallon on gasoline nationwide. State fuel taxes, however, vary dramatically. The FHWA publishes comprehensive fuel tax data for all 50 states and the District of Columbia in its annual Highway Statistics report.

Pennsylvania leads the nation at 57.6 cents per gallon, followed by California at 53.9 cents and Washington at 49.4 cents. At the other end, Alaska charges just 8.0 cents per gallon, followed by Hawaii at 16.0 cents and New Mexico at 17.0 cents. The difference between the highest-tax and lowest-tax states is 49.6 cents per gallon.

It is worth noting that some states levy additional fees beyond the per-gallon excise tax shown here. Several states apply a percentage-based sales tax on top of the excise tax, environmental fees, inspection fees, or underground storage tank fees. These additional charges can add 5 to 15 cents per gallon in some states.

04 Regional Price Patterns

The EIA divides the United States into five Petroleum Administration for Defense Districts (PADDs), each with distinct refining capacity, pipeline infrastructure, and supply dynamics. The EIA publishes weekly retail gasoline prices for these regions, and the price spread between the cheapest and most expensive regions has been consistently large.

The Gulf Coast (PADD 3) consistently has the lowest prices in the country. This region contains roughly half of all U.S. refining capacity, including massive refinery complexes along the Texas and Louisiana coast. Short supply chains and intense competition keep prices low. Texas, the largest state in this district, had a retail price of $2.53 per gallon in February 2026.

The West Coast (PADD 5) is consistently the most expensive region. California's unique fuel formulation requirements (CARB gasoline), limited pipeline connections to other regions, and high state taxes combine to push prices well above the national average. In February 2026, California's average was $4.44 per gallon, nearly $1.91 more than Texas.

05 The Annual Cost Impact

State-level price differences translate directly into annual fuel cost differences. The impact is even more dramatic when you factor in commuting costs, since most Americans drive to work daily. A driver who uses 480 gallons per year (12,000 miles at 25 MPG) would pay $1,219 in Texas at $2.534 per gallon but $2,132 in California at $4.441 per gallon. That is a difference of $913 per year for the same amount of driving.

Vehicle fuel economy amplifies or reduces this geographic penalty. A driver with a 35 MPG vehicle uses about 343 gallons per year, reducing the California-to-Texas gap to about $654. A driver with a 20 MPG truck uses 600 gallons, and the gap grows to $1,144.

06 What Stays the Same Over Time

While gasoline prices fluctuate with crude oil markets, the relative ranking of states and regions remains remarkably stable. States with high fuel taxes and distance from refineries stay expensive. States near the Gulf Coast with low taxes stay cheap. The structural factors that drive these differences (tax policy, refinery infrastructure, and fuel regulations) change slowly if at all.

The national average retail gasoline price was $2.17 per gallon in 2020, rose to $3.95 in 2022 (the highest annual average on record), and settled at $3.10 in 2025. Throughout that entire range, the West Coast remained the most expensive region and the Gulf Coast remained the cheapest. The spread between them stayed between $1.00 and $1.75 per gallon in every single year.

This stability means that articles analyzing state-level gas price patterns remain relevant regardless of where crude oil prices go next. The relative cost of driving in California versus Texas, or Pennsylvania versus Missouri, is determined more by state policy and geography than by global oil markets.

07 Data Sources

1. Federal Highway Administration: Highway Statistics 2022, Table MF-121T: State Tax Rates on Motor Fuel. fhwa.dot.gov
2. U.S. Energy Information Administration: Petroleum & Other Liquids, Weekly Retail Gasoline and On-Highway Diesel Prices by PADD District and Selected States. eia.gov
3. U.S. Energy Information Administration: Gasoline Explained: Factors Affecting Gasoline Prices. eia.gov
4. U.S. Energy Information Administration: Refinery Capacity Report, Number and Capacity of Petroleum Refineries. eia.gov
5. U.S. Environmental Protection Agency: Reformulated Gasoline Program. epa.gov