12 Cities Where Gas Is Above $3

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By Douglas A. McIntyre Published
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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.

ALSO READ: Will Oil Drop to $40?

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

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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