10 States With the Lowest Gas Prices

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By Douglas A. McIntyre Published
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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.

READ ALSO: States Where Manufacturing Still Matters

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.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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