Sylvie Willis
Gas prices in the United States vary significantly by state, with several factors influencing the cost. As of June 18, 2025, the average gas price in the US was $3.19 per gallon, with California, Hawaii, and Washington among the most expensive states, and Mississippi, Louisiana, and Texas offering cheaper gas. The price of gas is influenced by factors such as transportation costs, taxes, and regulations, with certain states, particularly in the southeast, known for consistently low gas prices.
| Characteristics | Values |
|---|---|
| Date | June 18, 2025 |
| Average US gas price | $3.19 per gallon |
| State with the highest average gas price | California ($4.65 per gallon) |
| States with the second and third-highest average gas prices | Hawaii ($4.46), Washington ($4.41) |
| State with the lowest average gas price | Mississippi ($2.69 per gallon) |
| States with the second and third-lowest average gas prices | Louisiana ($2.79), Texas ($2.80) |
| States with cheap gas | Mississippi, Texas, Missouri, Arkansas, Alabama, Louisiana, Oklahoma, Kansas, Tennessee, Kentucky |
| States with expensive gas | Hawaii, California, Nevada, Washington, Colorado, Oregon, Alaska |
| Reasons for high gas prices | Cost of transportation, taxes levied on gas, regulations, source of oil, quality of oil |
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What You'll Learn
States with the most expensive gas
Gas prices in the United States vary widely by region. As of June 18, 2025, California had the highest average gas price at $4.65 per gallon. This is due in part to the state's mandate for a more expensive "summer blend" fuel during the summer months to limit gasoline evaporation and reduce smog. California's high state taxes, which are nearly 80 cents/gallon, also contribute to the high gas prices.
Hawaii ($4.46) and Washington ($4.41) follow California as the states with the second and third-highest gas prices, respectively. Washington's high gas prices can be attributed to carbon offset costs, which are passed on to consumers and result in higher prices at the pump. Idaho and Montana also have notably high gas prices compared to other states in the region, such as Minnesota or Illinois.
In contrast, Mississippi has the lowest average gas price as of June 18, 2025, at $2.69 per gallon. Louisiana ($2.79) and Texas ($2.80) also have some of the lowest gas prices in the country. The South and Midwest regions tend to have cheaper gas prices overall.
While gas prices have been declining since 2022 due to slowing demand, they are still higher than pre-pandemic levels. As of July 2025, the average regular gas price in the U.S. is around $3.15 per gallon, down from $3.50 a year ago.
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States with the cheapest gas
The price of gas in the United States can vary significantly from state to state. Several factors influence the cost of gas, including the cost of transportation, state taxes and regulations, the quality of oil, and the availability of refining infrastructure. As of June 18, 2025, the average gas price in the US was $3.19 per gallon, with prices ranging from a high of $4.65 in California to a low of $2.69 in Mississippi.
Mississippi has the lowest gas prices in the country, with an average price of $2.69 per gallon as of June 18, 2025. Mississippi is followed by Louisiana ($2.79) and Texas ($2.80), which are also among the states with the cheapest gas. These states benefit from their proximity to major refining centres, with Texas and Louisiana alone accounting for 50% of US refining capacity.
Other states known for their low gas prices include Missouri, Arkansas, Alabama, Oklahoma, Kansas, Tennessee, and Kentucky. These states are mostly concentrated in the southeast, where gas prices tend to be more competitive. The lower gas prices in this region can be attributed to the abundance of refining infrastructure and the lower transportation costs associated with getting gas to these states.
In contrast, states on the West Coast, such as California, Washington, Oregon, and Nevada, tend to have higher gas prices. This is partly due to the additional costs of transporting fuel to these states, as pipelines do not cross the Rocky Mountains, and fuel must be shipped by sea. Additionally, states like California and Washington have stricter environmental regulations and higher state taxes, which contribute to higher gas prices.
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How taxes impact gas prices
Gas prices in the United States have been notoriously high in recent years, with the average gas price per gallon in 2024 being $3.30, down from $3.52 in 2023. As of June 18, 2025, the average U.S. gas price was $3.19 per gallon. However, prices vary across states, with California having the highest average gas price of $4.65 per gallon, followed by Hawaii ($4.46) and Washington ($4.41). On the other hand, Mississippi has the lowest average gas price at $2.69 per gallon, followed by Louisiana ($2.79) and Texas ($2.80).
These variations in gas prices across states can be attributed to several factors, including taxes. Taxes play a significant role in determining the retail price of gasoline. The federal tax on motor gasoline is 18.4 cents per gallon, which includes an excise tax of 18.3 cents per gallon and a federal Leaking Underground Storage Tank fee of 0.1 cents per gallon. As of January 1, 2024, state taxes and fees on gasoline averaged 32.44 cents per gallon, but they vary widely across states. For example, California has the highest gas tax rate at 68.1 cents per gallon, while some states have lower rates, such as Idaho and Washington.
In addition to state taxes, sales taxes, local and municipal government taxes, and environmental taxes can also impact the price of gasoline. Environmental taxes, such as carbon taxes, are designed to discourage the consumption of products that generate emissions. California, for instance, has additional carbon taxes that increase the price of gas by about 12 cents per gallon.
The impact of taxes on gas prices can be complex and interrelated with other factors. For example, taxes on gasoline can influence driving decisions, such as reducing leisure driving, and even work decisions, such as encouraging people to work more. Additionally, the cost of distribution, marketing, and retail dealer costs are included in the retail price of gasoline, and these costs can vary depending on the location of the gasoline fueling station.
While taxes are a significant contributor to gas prices, other factors also play a role. The cost of crude oil is the largest component of the retail price of gasoline, and its share varies over time and across regions. Refiners also charge more for higher-octane fuel, with premium-grade gasoline being the most expensive. Furthermore, the quality of oil and the cost of refining can impact prices, with Texas and the Gulf region having higher-quality oil that is cheaper to refine.
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How gas prices have changed over time
Gas prices in the United States have fluctuated significantly over time, influenced by various economic, political, and logistical factors. Let's take a look at how gas prices have evolved and the context behind their changes.
The Early Years: 1970s to 1980s
In 1970, the average gas price in the US was a mere 36 cents per gallon, but this didn't last. By 1980, prices had soared to $1.19 per gallon, which, adjusted for inflation, is equivalent to about $4.25 per gallon today. This massive increase was partly due to the global recession of the late 1970s and early 1980s, which saw unemployment spike and economic challenges mount.
The 2000s: Economic Crises and Fluctuations
Fast forward to the late 2000s, and gas prices were once again a significant concern. In 2009, the US economy teetered on the edge of crisis, and while oil prices surged, the situation didn't spiral out of control. This was likely due to a combination of factors, including the increased fuel efficiency of vehicles and the US's own increase in national oil production through hydraulic fracking.
2022: Surging Prices and Geopolitical Tensions
More recently, in 2022, gas prices in the US surged to some of the highest rates in about 40 years. The average gallon of gas cost $4.90, with inflation and the aftermath of the COVID-19 pandemic playing a role in this increase. Additionally, Russia's invasion of Ukraine led to economic sanctions and disruptions in the oil market, further driving up prices.
Regional Disparities
It's worth noting that gas prices in the US vary significantly by region. For example, coastal states like California, Washington, and Oregon tend to have higher gas prices than states in the Southeast, such as Mississippi, Louisiana, and Texas. This is attributed to factors like transportation costs, refinery locations, and state taxes.
Strategies for Consumers
In response to high gas prices, consumers can adopt various strategies. Temporary solutions include carpooling or working from home. More long-term approaches may involve investing in fuel-efficient vehicles or electric cars, especially if high prices are expected to persist.
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Strategies to save money on gas
Gas prices in the United States have been on a downward trajectory since 2022, with the national average price for regular gasoline at $3.06 per gallon in 2025. However, gas prices vary across states, with California having the highest average price at $4.38 per gallon, and Mississippi the lowest, at $2.69 per gallon.
Use Gas Rewards Credit Cards and Gas Apps
Gas rewards credit cards are a great way to save money at the pump, but they usually require a good to excellent credit score. Check your credit score before applying for a card and improve it if necessary. Smartphone apps like GasBuddy, AAA, and Gas Guru are also useful for finding the best gas prices and deals. These apps are free and can be downloaded on Apple and Android devices.
Buy Discounted Gas from Warehouse Stores
Warehouse stores like Costco, Sam's Club, Walmart, and BJ's often sell gas to their members at discounted rates, which can be up to 25 cents lower than average gas station prices. For example, a Walmart+ membership offers an additional 10 cents off per gallon at Walmart and other gas stations across the country.
Adjust Your Commuting Habits
If you can, consider walking, biking, carpooling, or taking public transportation instead of driving. Working from home, even part-time, can significantly reduce your gas expenses. Additionally, try to bundle your errands and appointments to reduce the number of car trips and save on fuel.
Maintain Your Vehicle
Regularly servicing your vehicle can improve fuel efficiency. Keep your tires properly inflated, replace worn-out spark plugs and air filters, and follow the manufacturer's recommendations for maintenance. These simple steps can help your car run more efficiently and save you money on gas.
Fill Up at Optimal Times
Gas prices tend to be lower early in the week, particularly on Mondays and Tuesdays when there is less demand. Gas is also often cheaper late at night or early in the morning. Filling up outside of peak times can save you money, and you may even get a little extra gas due to gasoline expansion in warmer temperatures.
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Frequently asked questions
As of June 18, 2025, the average gas price in the US was $3.19 per gallon.
The states with the most expensive gas are Hawaii, California, and Washington. In these states, the average price of gas is around $4.50 per gallon.
The states with the cheapest gas include Mississippi, Louisiana, Texas, Missouri, Arkansas, Alabama, Oklahoma, Kansas, Tennessee, and Kentucky. In these states, gas prices are typically around $3.00 per gallon.
