As another sign of how rapidly gasoline prices have fallen is that the average cost of a gallon of regular has dropped below $2 in three states. With oil at multiyear lows, below $54 a barrel, the list will grow.
Nationwide gas prices have dropped to $2.26. That is down from $2.78 a month ago and $3.30 a year ago. Because gas prices vary from area to area, three states have posted prices below $2 in the past several days. These are Missouri at $1.91, Oklahoma at $1.94 and Kansas at $1.99.
Low gas prices are usually based on three factors. The largest is the price of oil. The next is proximity to large refineries, which affects transportation costs. The last is state gas taxes.
Because the area near Houston has some of the largest refineries in the world, Missouri, Oklahoma and Kansas benefit. Oklahoma borders Texas to the north. Kansas and Missouri are nearby, as well as situated on the Mississippi River, a means of transportation of oil and gas into the center of the nation. Further proof of the argument that refining and transportation costs affect gas prices is that Texas ($2.04) and Mississippi ($2.09) are among the eight states with the lowest gas prices.
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Finally, the gas taxes in the three states with gasoline below $2 are low. The tax in Oklahoma, according to the Tax Foundation is about $0.17 per gallon, which puts it 46th in the country. In Missouri it is also $0.17, or 45th lowest. In Kansas it is $0.25, which is 25th lowest.
In contrast, gas taxes in the states where they are highest have rates as much as twice the three with sub-$2 prices. In New York, which has the highest gas tax, the amount of the tax is $0.50. The average price of a gallon gas in New York is among the highest in the country at $2.79. California’s gas tax is second among the states at about $0.49. It also has one of the highest average gas prices at $2.65.
As gasoline prices continue to fall nationwide, those in Missouri, Kansas and Oklahoma are likely to be the ones that sink toward $1.80, or even $1.70.
ALSO READ: The Best and Worst Run States in America
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