Mercedes Mullins
Gas prices vary widely across the United States, with several factors influencing the cost of gas in each state. As of 2023, the average price of gas in the US is $3.15 per gallon, though this figure has been steadily declining since 2022. Generally, West Coast states like California have the highest prices, while states in the South and Midwest, such as Mississippi, Texas, Missouri, and Louisiana, tend to have cheaper gas. This disparity can be attributed to factors like local taxes, refinery access, and supply disruptions. To find the most affordable gas in their area, consumers can utilize gas apps like GasBuddy, Waze, and Google Maps, which provide real-time price information and rewards programs for additional savings.
| Characteristics | Values |
|---|---|
| Date | June 18, 2025 |
| Average U.S. gas price | $3.19 per gallon |
| State with the lowest average gas price | Mississippi ($2.69 per gallon) |
| States with the highest average gas prices | California ($4.65 per gallon), Hawaii ($4.46), and Washington ($4.41) |
| Average monthly gas price per gallon in 2025 | $3.17 in April, $3.15 in May |
| Average gas price per gallon in 2024 | $3.30 |
| Average gas price per gallon in 2023 | $3.52 |
| Average gas price per gallon in 2022 | $3.95 |
| Average U.S. expenditure on gas | $127.81 per month |
| Average U.S. expenditure on gas per transaction | $46.74 |
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What You'll Learn
- California has the highest gas price ($4.65 per gallon)
- Mississippi has the lowest gas price ($2.69 per gallon)
- Gas prices vary due to taxes, transportation costs, supply chains, and local regulations
- The average US gas price on June 18, 2025, was $3.19 per gallon
- Gas prices have been dipping since 2022
California has the highest gas price ($4.65 per gallon)
As of June 2025, California has the highest gas price in the nation at $4.65 per gallon. This is despite a 2024 report showing that, thanks to major improvements in fuel efficiency, California drivers rank 45th in the nation for gasoline consumption and 21st in spending on gasoline per capita.
There has been a lot of speculation and misinformation about California gas prices, with many claims that prices are "set to soar". These claims are largely driven by Republican lawmakers and the oil industry. In reality, California gas prices are 20 cents lower than they were one month ago and 17 cents lower than one year ago.
Trump's tariffs and policies impacting the price of crude oil are likely to have a much greater impact on gas prices than any state policy. In fact, changes to California's Low Carbon Fuel Standard (LCFS) program are estimated to reduce fuel costs for Californians per mile by 42% by 2045, resulting in savings of over $20 billion in gasoline costs annually.
While it is true that the LCFS program could add between 5 and 8 cents per gallon in the short term, this is still well below the extreme projections that have been circulated. These projections are based on unscientific analyses with close ties to the oil industry and lack any supporting evidence.
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Mississippi has the lowest gas price ($2.69 per gallon)
As of June 18, 2025, Mississippi had the lowest average gas price in the US at $2.69 per gallon. This is compared to a national average of $3.19 per gallon, with prices as high as $4.65 per gallon in California, the most expensive state. Mississippi's low gas price is even more notable when compared to the national average price for premium gasoline, which stands at $3.98 per gallon.
Mississippi's low gas prices could be due to various factors, including taxes, transportation costs, supply chains, and local regulations. These prices are also relative to the current economic climate, with US inflation accelerating in January 2025 and the cost of a gallon of gasoline increasing by 1.8% from December 2024. Despite this, Mississippi's gas prices remain low, providing a budget-friendly option for drivers in the state.
The low gas prices in Mississippi can have a significant impact on the finances of its residents. Nationally, drivers spend an average of $127.81 per month on gas, with an average of $46.74 per transaction. With Mississippi's lower gas prices, residents may benefit from reduced commuting costs, which could lead to notable savings over time. This is especially advantageous for those with longer commutes or those who frequently drive for work or other purposes.
In addition to financial benefits, Mississippi's low gas prices can also influence consumer behaviour and purchasing decisions. With more affordable gas prices, consumers may be less inclined to adopt strategies to reduce their gas consumption, such as carpooling or working from home. Additionally, the availability of cheaper gas may impact the adoption of electric vehicles (EVs) or fuel-efficient cars in the state. While these vehicles offer long-term savings on gas, the relatively low gas prices in Mississippi could make the switch to more efficient vehicles less appealing to some consumers.
Overall, Mississippi's low gas price of $2.69 per gallon sets it apart from other states and offers financial relief to its residents. This price advantage can influence consumer behaviour, purchasing decisions, and overall affordability within the state. However, it's important to monitor trends and stay informed about potential changes, as gas prices are subject to fluctuations over time.
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Gas prices vary due to taxes, transportation costs, supply chains, and local regulations
Gas prices vary significantly across different states in the US due to a combination of factors, including taxes, transportation costs, supply chains, and local regulations. These factors can cause the price of gas to differ by as much as $2 per gallon between the most expensive and least expensive states.
One of the primary factors influencing gas prices is taxes. States with higher fuel taxes, such as California, Pennsylvania, and Hawaii, tend to have higher prices at the pump. For example, California's gas tax is 77.9 cents per gallon, while Alaska's tax is only 9 cents per gallon. These differences in taxation can significantly impact the final price that consumers pay for gas.
Transportation costs also play a role in the variation of gas prices. Retail gasoline prices tend to be higher in locations farther away from supply sources, such as refineries, ports, and pipeline terminals. The distance and difficulty of transportation can increase the cost of delivering gasoline to these areas, which is then reflected in the price charged to consumers.
Supply chain disruptions can also cause fluctuations in gas prices. Events such as pipeline disruptions, refinery maintenance, or natural disasters can slow down or stop gasoline production, leading to increased bidding and higher prices for available supplies. If the gasoline transportation system is unable to deliver surplus supplies between regions, prices may remain high.
Local regulations and environmental laws can further contribute to variations in gas prices. Some states, like California, have stricter environmental standards and require the use of reformulated gasoline with additives to reduce carbon monoxide and air pollutant emissions. California's unique blend of gasoline is produced by relatively few refineries, and the state's high demand requires refineries to run at near-full capacity, impacting the price. Federal fuel standards that mandate blending ethanol or biofuel with gasoline can also raise production costs and influence state-level prices.
Overall, the interplay of these factors—taxes, transportation costs, supply chains, and local regulations—creates a complex landscape of gas prices across the United States, with some states consistently offering cheaper gas to their residents and travelers.
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The average US gas price on June 18, 2025, was $3.19 per gallon
On June 18, 2025, the average US gas price was $3.19 per gallon, a decrease of 7.3% from $3.44 a year earlier. The average price of gas per gallon in 2024 was $3.30, down from $3.52 in 2023 and $3.95 in 2022. In 2025, the average gas price was lowest in January at $3.08 per gallon and highest in April at $3.17.
The average cost of gas since 1929, when adjusted for inflation, is $3.34, which is $0.18 more than the $3.17 paid today. Gas prices are a top concern for American adults, with 86% expressing worry about future gas prices, according to Finder's Consumer Confidence Index.
The highest average gas prices on June 18, 2025, were in California ($4.65 per gallon), Hawaii ($4.46), and Washington ($4.41). Mississippi, on the other hand, had the lowest average gas price at $2.69 per gallon, followed by Louisiana ($2.79) and Texas ($2.80).
The national average gas price continued to fall, reaching $3.17 per gallon on July 3, 2025, a decrease of $0.05 or about 2% from $3.22 on June 26, 2025.
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Gas prices have been dipping since 2022
Gas prices have been a hot topic recently, with former President Donald Trump making claims about falling prices. In April 2025, Trump claimed that gas prices in some states had fallen to $1.98 per gallon, a figure that was not accurate. He later claimed that five states had prices below $2, which was also false. The lowest state average price for regular gas was about $2.71 in Mississippi, with Louisiana, the fifth-cheapest state, at about $2.79 per gallon. These prices are a far cry from Trump's claims, and it is important to fact-check such statements.
Despite Trump's inaccuracies, it is worth noting that gas prices have indeed been dipping since 2022. While there are no specific figures mentioned for 2022, GasBuddy, a company that tracks prices at tens of thousands of stations, noted that in July 2025, gas prices for the Fourth of July weekend were expected to be the lowest for the holiday since at least 2021. This indicates a downward trend since 2022, as 2021 prices were already lower than in previous years.
The Covid-19 pandemic heavily impacted gas prices, with demand weakening and causing a dip in prices. GasBuddy's head of petroleum analysis, Patrick De Haan, stated that the last time any state average was below $2 per gallon was in January 2021 during the pandemic. This further supports the notion that gas prices started decreasing in 2022, as the effects of the pandemic continued to influence the market.
While gas prices have been on a downward trajectory, it is essential to consider the context and historical data. The specific prices in each state may vary, and it is always advisable to refer to the latest data and reports to make informed decisions and comparisons. Overall, it appears that gas prices have been on a downward trend since 2022, but it is uncertain how long this trend will continue or if it will be impacted by global events.
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Frequently asked questions
As of June 18, 2025, Mississippi had the lowest average gas price at $2.69 per gallon.
Gas prices vary across states due to factors such as supply and transportation costs, and state taxes. Mississippi, being in the southeast of the US, may benefit from lower transportation costs compared to states on the west coast or further away from oil sources.
Other states known for having cheap gas include Texas, Louisiana, Alabama, Oklahoma, and Kansas.
California had the highest average gas price as of June 18, 2025, at $4.65 per gallon. Hawaii was the second-highest at $4.46, and Washington was third at $4.41.
