As gasoline prices crash toward $2 in many markets in the United States, the drivers in some cities still have to pay over $3 per gallon for an average gallon of regular. For several reasons, those prices are not likely to come down much, even if oil stays near $60 a barrel.
The cities where gas is still above $3 are Bakersfield, Calif. ($3.00); Seattle ($3.01); Santa Barbara, Calif. ($3.01); Long Island, N.Y., which is not a city ($3.03), Burlington, Vt. ($3.03); Bridgeport, Conn. ($3.07); Rochester, N.Y. ($3.08); New York City ($3.08); Buffalo, N.Y. ($3.10); San Francisco ($3.11); Anchorage ($3.29); and Honolulu ($3.57).
By contrast, the average price for a gallon of regular nationwide is $2.63, according to GasBuddy. The city with the lowest price is Lubbock, Texas, at $2.26.
The cities with high gas prices share several factors. None is in an area close to large refineries. Most of these refineries are clustered near the Gulf of Mexico and along the southern East Coast. The states that suffer most from this problem are Alaska, which is more than 3,000 miles from south Texas and its huge Gulf refineries, and Hawaii, which is thousands of miles from supply from either Asia or America’s West Coast.
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Most of the rest of the cities are in states remote from refineries, particularly New York, Connecticut, Vermont and California.
State gas taxes also boost prices, particularly in New York, California and Hawaii. New York has the highest gas tax in the nation at $0.50 a gallon. California is second at $0.487 and Hawaii third at $0.471. Bridgeport is hurt because the Connecticut gas tax is fourth among the states at $0.45.
The debate about gas taxes is that states need the revenue to repair aging road and bridge infrastructure, against low gas taxes, which presumably increase consumer spending. The bias appears to be toward higher taxes as the price of gas falls, because the need for road repairs has become more urgent.
If high gas taxes drag on consumer spending, it should show up in high gas cities and states, which would favor the argument that taxes stay low. However, for the time being, cities in New York, California and outside the continental United States will continue to suffer.
ALSO READ: America’s 50 Best Cities to Live
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