If you drive regularly, you have probably noticed that gas prices often change. What’s more, average gas prices by state can vary significantly, which is crucial to know if you plan a road trip.
Now, you’ll learn more about current average gas prices, where to find the most affordable gas, and, most importantly, what affects the price increase.
Find in this article:
- How high is the national gas price on average?
- How much does the average gallon of gas cost?
- What does the price of a gallon of gas include?
- What’s the reason behind an increase in gasoline prices?
- What state has the highest gas prices at the moment?
- Where can I find the most affordable gas in the US?
- What was the highest gas price per gallon ever?
Current Average Gas Prices by State
Current average gasoline prices vary by state. Note that the prices are updated daily and some changes might occur. This is why we recommend checking current prices online.
Right now, Washington, Oregon, California, Nevada, Illinois, Alaska, Iowa, Hawaii, New York, and Pennsylvania have some of the highest gas prices in the USA that range from about $5.29 to $4.18. Moreover, the prices in Arizona, Maine, Vermont, New Jersey, and several other states range from $4.18 to $4.00.
On the other hand, Kansas, Missouri, Arkansas, Oklahoma, Texas, North Dakota, South Dakota, Nebraska, and a few other states have the most affordable gas prices, ranging from about $3.72 to $3.60.
What Is the National Average Gas Price?
Average gas prices change daily and, according to the latest news at the moment of writing this article, the average US gas price is $3.40 per gallon. This is a penny up compared to the past few weeks. What’s more, industry experts claim that the prices could further increase due to the rising cost of crude oil.
When it comes to average gas prices by year, it is 95 cents higher than it was one year ago. Additionally, the average gas price of diesel fuel is $3.70 per gallon—up by 6 cents than in previous years.
The highest average price for regular-grade gas is in the San Francisco Bay Area, at $4.74 per gallon. On the other hand, Houston has the lowest average, at $2.86 per gallon.
What Is the Average Price of a Gallon of Gas?
Gas prices in the US often change, and the current average price for a gallon of gas hovers around $3.30. Some experts say that the US is in a peaceful period regarding gas prices. However, this could change during spring when Americans can expect a price increase.
The current estimates show that gas prices in the US could hit $4 per gallon in 2022, while drivers paid only $2.36 per gallon last year. For example, the average gas prices by state and by year show that the price is $3.37 in New Jersey, while it was $2.51 per gallon a year ago.
Experts believe that higher gas prices could help the economy recover. Therefore, it is expected that the average yearly national gas price in 2022 will increase to $3.41 per gallon, from $3.02 in 2021. However, if all goes well, Americans could see gas prices drop by the end of 2022.
What Makes Up the Price of a Gallon of Gas?
Several factors come into play before the final price of a gallon of gas is calculated. The primary one is the price of crude oil—the higher the price, the more you’ll have to pay per gallon. Furthermore, refining costs and profits are also crucial elements of the gas price.
Additionally, distribution and marketing costs must also be included. Gasoline is usually shipped from refineries to terminals in the consuming areas, and its price should meet the local market conditions. Finally, local, state and federal taxes contribute to the cost of a gallon.
Why Are Gasoline Prices Rising?
The first reason gasoline prices are rising is that Americans are back on the roads after the lockdowns. The number of vehicles on the roads plummeted in the spring of 2020, but now people are back on highways, and the numbers are normalizing.
Still, US oil production and processing didn’t follow up with changes. What’s more, there were significant supply constraints.
Finally, energy markets across the globe face multiple issues that aren’t helpful with the supply chain.
What State Has the Highest Gas Prices Right Now?
California has the highest gas price at $4.71 per gallon. States that also have high prices are Hawaii, Washington, Oregon, Nevada, Alaska, Arizona, New York, and Pennsylvania.
The cost of a gallon doesn’t go below $3.69 in these states. Unfortunately, when gas prices increase, it can impact the whole economy. Still, the increased gas costs also increase taxes, so these states might see increased revenue.
Where Is the Cheapest Gas in the USA?
Texas is among the top 10 states where the gas is the cheapest. Moreover, Texas ranks 4th state in America with the lowest average gas prices. This is likely due to the proximity of the oil and gas industry, lower taxes fees, and lower distribution costs. Overall, gas prices are rising in the US, leading to pricier commuting and traveling.
At the moment, gas prices in Texas are still in the lower range, at about $2.99 per gallon. Texas remains on the list of the top 10 states with low gas prices, including Oklahoma, Missouri, Mississippi, Kentucky, Alabama, and similar.
Moreover, estimates show that the prices will keep increasing in the next few months. Therefore, people are advised on how to save gas and drive efficiently until the gas prices go back to normal.
What Is the Highest Gas Price Ever?
The US prices of gasoline reached the highest levels in 2021. According to GasBuddy, it was the highest average price ever recorded—$4.75 per gallon. The city was San Francisco, and it breached the previous record of $4.743 set in 2012.
At that time, the average fill-up motorists had to pay was $62. That’s 65% more than in the cheapest location Lawton, Oklahoma, where gas prices were $2.86.
The pandemic has affected the economy, as it caused a shift in the supply chain and many more challenges. All these events led to the increase in the national average gas price across states. Still, some locations offer more affordable gas prices than others.
Texas has always been on the list of the states with affordable gas, while California has been among the most expensive places to drive at. According to the latest predictions, things might turn for the better by the end of 2022.