Energy

10 States With the Lowest Gas Prices

As the price of a gallon of regular gasoline nationwide hovers around $3.43, there are 10 states that have prices below $3.25. Most have large refineries in or near them. Several have low gas tax rates.

The states, according to GasBuddy, starting with the lowest are South Carolina ($3.16), Mississippi ($3.18), Alabama ($3.19), Louisiana ($3.20), Virginia ($3.20), Arkansas ($3.21), Tennessee ($3.22), New Jersey ($3.24), Texas ($3.24) and Oklahoma ($3.24).

Seven of the states sit on the oil-rich Gulf of Mexico, and the refining states that ring it: Mississippi, Alabama, Louisiana, Texas, Oklahoma, Arkansas and Tennessee.

According to the Tax Foundation, several of the states are among the bottom 10 in terms of state gas taxes: Mississippi, New Jersey, South Carolina, Virginia and Oklahoma.

Whatever the reason for low gas prices in these states, the advantage has an effect on the fortunes of many household budgets and on consumer spending. Gas at $4 has been considered a barrier to consumer spending, a point at which particularly lower- and middle-income Americans face stretched household budgets. This is particularly true in households in which members must drive long distances, primarily commuting to work.

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The trend in gas prices continues to move lower. According to a GasBuddy blog post last week:

43 out of 50 states saw average prices decline in the last week, with several Great Lakes witnessing the largest declines. Ohio dropped 12.3c/gal in the last week, Michigan saw a 10.6c/gal decline, Indiana saw a 9.8c/gal decline. Rounding out the top five largest declines: New Jersey, who dropped 4.9c/gal, and Pennsylvania, who saw a 4.5c/gal drop. Many states in the Northeast also saw similar declines: Vermont, Maine, New York, New Hampshire, and Rhode Island all saw declines greater than 3c/gal.

Several more states should have gasoline prices below $3.25 by fall.

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