The price of oil surged to over $70 a barrel after a military attack on a Saudi oil field and series of decisions by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to cap output. Gasoline prices, already rising sharply, have reached multiyear highs. Eight states have gas prices that have cracked the barrier of $3 for an average gallon of regular.
In fact, as the price of oil has risen, predictions that gasoline will top $3 nationwide for the average gallon of regular have grown. Recently, the carefully followed analysts at GasBuddy forecast a 70% chance per-gallon gas prices will reach $3 by Memorial Day. The company added, “The last time the national average reached the $3/gal threshold was over 2,300 days ago, on October 10, 2014, but did get close in 2018, when the national average reached $2.97 per gallon.”
Additionally, oil prices have risen an extraordinary 86% since the U.S. presidential election. The price was $36 a barrel at the end of November, and at $66 today trades near the highest price in a year. Gasoline prices also have surged. Today, the average price for a gallon of regular in the United States was $2.84, up from $2.50 a month ago.
The best predictor of gasoline prices is oil prices. They almost always outweigh refinery costs, transportation costs and state gas taxes, although each of those factors contributes.
Gas prices by state vary from the national average for several reasons. The first is proximity to refineries. States near the huge refineries along the Gulf of Mexico tend to have the lowest prices in the country. Notably, the five states with the lowest per-gallon gas prices are Mississippi ($2.51), Louisiana ($2.52), Texas ($2.57), South Carolina ($2.59) and Alabama ($2.59). The transportation costs from refineries to nearby areas shaves the average price of gas down, compared with much of the rest of the nation.
Another primary factor in prices is gasoline taxes. According to the American Petroleum Institute survey of state gas taxes as of January 1, the U.S. average is $0.5523 a gallon. States with low gas taxes include Missouri ($0.3582), Mississippi ($0.3719) and New Mexico ($0.3738). The states with the highest gas taxes are California ($0.8145) and Pennsylvania ($0.7710).
Ten states currently have average prices for a gallon of regular at or over $3. California’s $3.80 price clearly is affected by its gas tax. In Hawaii, the price of $3.48 is affected by a relatively high gas tax at $0.6524 per gallon. However, the cost of transportation to islands that are 2,500 miles from the west coast is also a major contributor to Hawaii’s price. The price for a gallon of regular in Washington is $3.25. Its gas tax is a high $0.678 per gallon.
If the GasBuddy analysis is correct, people who might drive for Memorial Day, despite the pandemic, will pay more at the pump than they did last year.
This is the average price of a gallon of regular gasoline in all 50 states today:
| State | Price |
|---|---|
| Mississippi | 2.505 |
| Louisiana | 2.517 |
| Texas | 2.568 |
| South Carolina | 2.585 |
| Alabama | 2.594 |
| Oklahoma | 2.597 |
| Arkansas | 2.599 |
| Tennessee | 2.628 |
| North Carolina | 2.635 |
| Montana | 2.641 |
| Georgia | 2.651 |
| Kansas | 2.653 |
| Kentucky | 2.676 |
| Missouri | 2.681 |
| New Hampshire | 2.684 |
| Wisconsin | 2.696 |
| Ohio | 2.701 |
| Indiana | 2.711 |
| Massachusetts | 2.720 |
| Virginia | 2.722 |
| Vermont | 2.741 |
| Rhode Island | 2.742 |
| Delaware | 2.745 |
| North Dakota | 2.770 |
| Minnesota | 2.776 |
| Maine | 2.780 |
| Wyoming | 2.782 |
| West Virginia | 2.790 |
| South Dakota | 2.792 |
| Iowa | 2.806 |
| Colorado | 2.807 |
| Maryland | 2.808 |
| New Mexico | 2.813 |
| Nebraska | 2.816 |
| Michigan | 2.819 |
| Connecticut | 2.837 |
| Idaho | 2.846 |
| Florida | 2.853 |
| New York | 2.863 |
| San Juan | 2.867 |
| New Jersey | 2.915 |
| Utah | 2.939 |
| Illinois | 3.000 |
| Washington DC | 3.001 |
| Pennsylvania | 3.013 |
| Alaska | 3.022 |
| Oregon | 3.071 |
| Arizona | 3.091 |
| Nevada | 3.173 |
| Washington | 3.251 |
| Hawaii | 3.477 |
| California | 3.803 |
Click here to see which states have the highest and lowest gas taxes.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
