Energy

Chance for $1 Gas Disappears

Douglas A. McIntyre

Published: April 7, 2016 10:05 am

Last Updated: January 13, 2020 11:03 am

As national gasoline prices fell below $1.70 three months ago, based on the average for a gallon of regular, several areas had $1 gas, and in states like Oklahoma, the price for the entire state was headed in the $1 direction as well. The national average for a gallon of regular has surged to $2.04 recently. The chance that gas will be below $1 anywhere in the United States has disappeared.

The lowest prices for a gallon of gas are in the Oklahoma City area, where several stations have gas prices of $1.48. All 50 of the locations with the cheapest gas in America are in Oklahoma, with prices ranging from $1.48 to $1.53.

It is no surprise that Oklahoma has the locations with the cheapest gas because it has the lowest average price among all states at $1.77. Contrast that to California, which has the most expensive average at $2.80, according to GasBuddy.

Obviously, the primary mover in gas prices is the cost of crude oil. The price of oil is near $37, up from a 52-week low of just below $30 three months ago. The figure is still well below the 52-week high of just above $65.

Another critical factor is proximity to refineries. Oklahoma has its own, but the state is also close to the huge refineries south of Houston on the Gulf of Mexico. This also helps keep gas prices low in Mississippi at $1.84, Alabama at $1.85 and Louisiana at $1.85, as well.

Another factor in gas prices is the taxes and fees states added. The national average is $0.48 a gallon, according to the American Petroleum Institute. Oklahoma’s is $0.35 and California’s is $0.59.

Oklahoma may continue to have the lowest gas prices in America, but that price will not be back at $1 anytime soon.