Katerina Swanson
Fuel prices are a significant concern for many Americans, with the cost of gasoline playing a crucial role in household budgets and the broader economy. As of July 2025, the average price of gasoline in the USA stands at $3.14 per gallon, a decrease from the previous year's average of $3.50. However, prices vary across the country, with Western states, particularly California, having prices significantly higher than the national average, while Midwestern and Southern states enjoy lower rates. The Energy Information Administration (EIA) predicts that global consumption of liquid fuels will increase in 2025, but prices are expected to remain relatively stable or even decrease further, providing some relief to consumers and businesses alike. With the fluctuating nature of fuel prices, consumers are also turning to rewards programs and apps to help them save money at the pump.
| Characteristics | Values |
|---|---|
| Average price of gas in the US | $3.14 per gallon |
| Average price of gas one year ago | $3.50 per gallon |
| Average price of gas in the world | $1.20 per liter |
| Average price of gas in the US in 2024 | $3.20 per gallon |
| Average price of gas in the US in 2023 | $3.40 per gallon |
| Average amount spent on gas per month | $161.50 |
| Average amount spent on gas per transaction | $51.80 |
| Average price of gas in Western US states | 20% higher than the national average |
| Average price of gas in California | 50% higher than the national average |
| Average price of gas in the Midwest | 5-10% lower than the national average |
| Average price of gas in the South | 5-10% lower than the national average |
| Average price of gas in the Northeast | 5% higher than the national average |
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What You'll Learn
Gas prices vary across the US
State-wide prices vary, with gas prices in the Western US states about 20% higher than the national average, and prices in California around 50% higher. In contrast, prices in the Midwest and the South are about 5-10% lower than the national average. Prices in the North East are slightly higher, at about 5% above the national average.
The variation in gas prices across the US can also be attributed to differences in fuel taxes and access to refineries. States with higher fuel taxes or limited access to refineries generally have higher prices, whereas states with lower taxes or a plentiful local supply tend to have cheaper rates.
Additionally, gas apps and rewards programs can help consumers save money at the pump. For example, GasBuddy offers a rewards program that can save users up to 25 cents per gallon. Major gas station chains, such as Exxon, Shell, and Circle K, also offer rewards programs that provide discounts on gas purchases. Grocery chains, like Kroger, have similar programs where members can earn fuel points on their purchases, which can be redeemed for discounts at partner fuel stations.
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Gas prices are falling
The decrease in gas prices is due to a combination of factors, including slowing demand and increased oil production. The Energy Information Administration (EIA) attributes the lower prices to a decrease in global consumption of liquid fuels, with demand projected to increase by 1.3 million barrels per day in 2025, which is below the average annual oil demand growth from 2021 to 2023. OPEC+'s announcement of increasing oil production by more than 400,000 barrels per day has also contributed to the falling prices, as oversupply impacts the market.
Seasonality also plays a role in gas price fluctuations, with prices typically decreasing in the fall and winter due to lower consumer demand and the use of cheaper winter-blend gasoline. Prices tend to increase in the spring and summer when refineries switch to summer-blend gasoline, which is more expensive to produce and helps limit emissions during warmer months. Despite the typical seasonal increases, gas prices have remained relatively stable during the 2025 summer driving season.
While gas prices have been falling overall, there are variations across different states. In June 2025, California had the highest average price for regular gas at $4.63, while Mississippi boasted the lowest at $2.71. The least expensive states for public charging per kilowatt-hour include Kansas, Missouri, Iowa, and North Dakota, with rates ranging from 22 to 28 cents.
With gas prices on a downward trend, drivers can take advantage of cost-saving strategies, such as utilising rewards programs offered by gas apps and retailers, to further maximise their savings at the pump.
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Gas apps offer rewards programs
The average price of gas in the US is currently $3.14 per gallon, down from $3.50 a year ago. While gas prices have been steadily falling since 2022, there are still ways to save money at the pump. One way is to take advantage of gas apps that offer rewards programs.
GasBuddy, for instance, offers a rewards program that can save users up to 25 cents per gallon. Most major gas station chains, including Exxon, Shell, and Circle K, have rewards programs. Exxon Mobil Rewards+™ program, for instance, allows individuals to earn rewards on gas purchases and convenience store or car wash transactions. The program has multiple tiers of membership, with most members receiving three points per gallon of regular gas and two points for every dollar spent at the convenience store or car wash.
Some grocery chains also have rewards programs that provide discounts on gas. For example, Kroger gives members 1 Fuel Point for every $1 spent in Kroger supermarkets, which can be redeemed at Kroger gas stations or other partner fuel stations. Similarly, Amazon Prime members can link their Amazon and Earnify accounts to save 10 cents per gallon on fuel.
Other apps like Ibotta offer cashback on specific items from particular stores. One can purchase gas station gift cards from retailers through the Ibotta app and save extra money by cashing out earnings for e-gift cards to retailers that sell gas.
The Fuel Rewards® program is another free loyalty program that helps users save money on fuel at over 11,000 Shell stations nationwide. Members with Gold Status save at least 5 cents per gallon on every fill-up, with additional savings when shopping, dining, booking travel, and more.
To maximize savings, it is essential to consider the frequency of visits to a particular gas station and the potential for stacking deals with other apps or loyalty programs.
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Gas prices vary by grade
Gas prices in the US vary by grade, with regular gasoline being the most widely used grade and mid-grade gasoline being about 13% more expensive. The price of gasoline also varies across US states and regions. For example, prices in Western states are about 20% higher than the national average, with California being about 50% higher. In contrast, prices in the Midwest and the South are about 5-10% lower than the national average. The Northeast sees prices that are about 5% higher.
As of July 2025, the average price of gas in the US was $3.14 per gallon, a decrease from the average of $3.50 per gallon a year prior. The national average price is projected to continue dropping to $3.20 per gallon by the end of 2025. This decrease in gas prices can be attributed to slowing demand and a robust supply of crude oil.
The variation in gas prices across US states and regions can be influenced by various factors such as taxes, transportation costs, supply chains, and local regulations. States with higher fuel taxes or limited access to refineries tend to have higher prices, while those with lower taxes or an abundant local supply often benefit from cheaper rates.
Additionally, some gas apps and retailers offer rewards programs that can help users save money at the pump. For instance, GasBuddy offers a rewards program that can save users up to 25 cents per gallon. Similarly, major gas station chains like Exxon, Shell, and Circle K, as well as grocery chains like Kroger, provide rewards programs that offer discounts on gas purchases.
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Gas prices are affected by state taxes
Gas prices in the US are affected by a multitude of factors, one of which is state taxes. Gas taxes are levied by both federal and state governments, and these taxes can vary widely across states. These taxes are used to fund highway repair and maintenance, as well as other government infrastructure projects. While the federal gas tax is set at 18.4 cents per gallon, some states charge more than twice that amount. For example, California has one of the highest gas tax rates at 68.1 cents per gallon, while Alaska has the lowest rate at 8.95 cents per gallon.
State taxes on gasoline are implemented in a few different ways, including sales taxes, excise taxes per gallon purchased, and taxes on wholesalers or retailers. These taxes ultimately get passed on to consumers in the form of higher prices at the pump. In addition to state taxes, there are also federal taxes on special fuels like diesel, which is currently taxed at 24.4 cents per gallon.
The impact of gas taxes on prices is influenced by other factors as well. For instance, states with high sales taxes, like Washington, will generally have higher gas prices as sales tax is applied to the purchase of gasoline. Additionally, some states participate in cap-and-trade carbon policies or have low carbon fuel standards, which further drive up prices. These policies are in place to reduce emissions and promote cleaner energy sources.
While gas taxes have been a common way to generate revenue for road maintenance and infrastructure projects, their effectiveness is diminishing due to the increasing popularity of electric vehicles and improvements in fuel efficiency. As a result, some states are considering alternative methods, such as vehicle miles traveled (VMT) taxes, which would charge drivers based on the number of miles driven rather than the amount of gas consumed. Additionally, states like California are exploring pay-per-mile charges as a potential replacement for their gas tax, as revenue from taxing fuel has decreased.
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Frequently asked questions
The price of gasoline in the US varies and is dependent on the grade of gasoline, location, and date of purchase. As of July 25, 2025, the average price of a gallon of gas in the US is $3.14.
On average, Americans spend $161.50 per month on gasoline, with an average of $51.80 spent per transaction.
There are several ways to save money on fuel in the US. Firstly, prices vary across the country, so filling up in a state with lower fuel taxes or an abundant local supply may be cheaper. Additionally, several gas apps and reward programs can help you save money, such as GasBuddy, Exxon, Shell, Circle K, and Kroger.
