Energy

$1 Gas Price Becomes Less Likely

Douglas A. McIntyre

Published: March 13, 2016 9:58 am

Last Updated: January 13, 2020 12:01 pm

Probably due to the surging price of oil, primarily, gas prices will not drop to $1 anytime soon. Briefly, two months ago, the price breached that number on the way down at a few stations.

The price of an average gallon of regular nationwide is $1.93, up from $1.70 a month ago. Over roughly the same period, oil has gone from just above $28 a barrel to just below $40.

The lowest priced gas in the United States is in Arizona, where 49 of the 50 stations nationwide are located. In and around Tucson, the cheapest gas is $1.29 at one station. Nearly 100 stations have prices at or below $1.35.

The drivers in Arizona have several advantages. The state has the second lowest priced in the United States at $1.69 per average gallon of regular, according to GasBuddy. Only New Jersey has cheaper gas. For contrast, the state with highest gas price is California. Ironically, the two states share a border. But the high gas prices in California are not on that border. They are in and around the state’s most populated areas, primarily San Francisco and Los Angeles.

Among the primary reasons for Arizona’s low gas price is that it has among the lowest gas taxes in the country at $0.374 per gallon. The national average is $0.40, according to the American Petroleum Institute. The California rate is $0.59.

Arizona is also near several refineries in West Texas. The distance gas has to travel has an effect on price.

The prices of gas may never drop to $1, but if it continues to go higher, Arizona will remain a state with among the cheapest.