Business

These are the 10 States With the Cheapest Gas

Road Trip? Here are the States With the Cheapest GasGas prices are falling. In fact, they have declined to lows not seen in months. Concerns of yet another global recession have caused oil prices to drop, and with them, gas prices. In the U.S., prices of regular unleaded gasoline have fallen more than 50 cents per gallon since May, when the cost hovered near $4.00.

Still, gas prices vary widely between states—from $4.24 a gallon in Hawaii to $3.13 in Missouri, according to AAA. 24/7 Wall St. set out to find the states with the lowest gas prices and the possible reasons behind them.

Fuel has dropped by nearly a cent every day for the past four weeks, the New York Times reports. In some states, prices have fallen more than the national average, and in some regions, they have even fallen below $3.00 per gallon. Several factors affect gas prices depending on the state, but the main ones are gas taxes, the presence of nearby refineries, and the state’s cost of living.

The Tax Foundation reports that some states, including California and New York, have gas tax rates of nearly 50 cents per gallon. Other states, including South Carolina and Oklahoma, have a tax of less than 20 cents. While there are some exceptions, notably Indiana, most of the states with low gas tax rates also have low gas prices.

The presence of refineries within the state also appears to have a significant impact on gas prices. Texas, Oklahoma, and Louisiana are home to the vast majority of the nation’s fuel processing plants, and prices are notably lower in these states, possibly due to lower transportation costs.

The exception to this rule is California, which has the second most refineries in the country, but also has one of the highest average gas prices of $3.82. This is likely due in part to its gas tax rate, which is the highest in the country.

The final factor affecting state and regional gas prices is how much people can afford to pay. There is a high correlation between states with low median household incomes and states with low gas prices. The prices residents can afford to pay, in turn, affects the state’s cost of living.

In order to identify the states with the lowest gas prices, 24/7 Wall St. used AAA’s Daily Fuel Gauge Report, which presents the most recent statewide average price per gallon (PPG) regular gasoline. To find how many refineries each state has, data was gathered from the Energy Information Administration list of the major refineries in the U.S.

Median household income (MHI) data was obtained from the U.S. Census Bureau and state gas taxes from The Tax Foundation. Finally, the Missouri Department of Economic Development calculations were used to identify the cost of living in each state.

Road Trip? Here are the States With the Cheapest GasGeorgia
PPG, regular: $3.25
Cost of living: 16th lowest
MHI: $44,108 (12th lowest)
Tax per gallon: 20 cents

Georgia’s current average gas price is just $3.25, same as Kentucky and Indiana. In July, the state’s prices were almost on par with the national average, but have since dropped faster than the national level. Georgia has one of the lowest relative costs of living in the country, as well as a median household income of just $44,108, the 12th lowest in the country.

Road Trip? Here are the States With the Cheapest GasKentucky
PPG, regular: $3.25
Cost of living: 6th lowest
MHI: $41,236 (6th lowest)
Tax per gallon: 22 cents

Kentucky has both the sixth lowest median household income in the country and the sixth lowest cost of living. Its gas prices are similarly low. While the state only has two refineries, this is more than the majority of states.

Road Trip? Here are the States With the Cheapest GasIndiana
PPG, regular: $3.25
Cost of living: 7th lowest
MHI: $46,322 (19th lowest)
Tax per gallon: 37 cents

According to the Missouri Department of Economic Development, Indiana has the seventh lowest relative cost of living in the country. Indiana has two refineries, including a BP plant in Whiting, which is the seventh largest in the country and the 19th largest in the world. According to The Indy Channel, the state’s current average gas price of $3.25 is a full dollar less than the Indiana all-time high of $4.25. The news source also reports that gas prices have declined in the state by more than 50 cents in the past month.

Road Trip? Here are the States With the Cheapest GasOklahoma
PPG, regular: $3.24
Cost of living: the lowest
MHI: $43,400 (10th lowest)
Tax per gallon: 17 cents

Oklahoma has the absolute lowest cost of living in the country. Gas prices are similarly low. They have been exceptionally low lately, dropping below $3.00 per gallon in some areas. Oklahoma has six instate oil refineries. This is an exceptional amount compared to other states, especially considering Oklahoma’s relatively small size.

Road Trip? Here are the States With the Cheapest GasLouisiana
PPG, regular: $3.23
Cost of living: 17th lowest
MHI: $39,443 (4th lowest)
Tax per gallon: 20 cents

Its location on the Gulf of Mexico makes Louisiana an ideal location for refineries. With 17 plants, Louisiana has the third-most refineries in the country, and easily the most per square mile. The ExxonMobil plant in Baton Rouge is the second largest in the U.S. and the 10th largest in the world. Louisiana’s gas prices are also depressed by its economy. The state currently has the fourth lowest median income in the U.S.

Road Trip? Here are the States With the Cheapest GasTexas
PPG, regular: $3.22
Cost of living: 2nd lowest
MHI: $47,464 (23rd lowest)
Tax per gallon: 20 cents

Like Louisiana, Texas’s location on the Gulf of Mexico makes it also an ideal location for refineries, of which it has the most in the country — 23. The state also has the second lowest cost of living, behind only Oklahoma. The state’s gas prices have consistently remained below the national average. Recently, Fort Worth has had the lowest prices in the state at $3.14 per gallon.

Road Trip? Here are the States With the Cheapest GasTennessee
PPG, regular: $3.20
Cost of living: 3rd lowest
MHI: $38,686 (3rd lowest)
Tax per gallon: 21 cents

Tennessee has the third lowest cost of living in the country, according to the Missouri Department of Economic Development. The state is also one of the poorest in the country, with a median income of just $38,686. Since peaking in May at $3.73, the state’s average gas price has dropped more than 50 cents.

See The Rest of The List Here:

(Michael B. Sauter, Charles B. Stockdale/Becket Adams–24/7 Wall St./The Blaze)

Comments (136)

1 2 3
  • kalmak
    Posted on October 10, 2011 at 3:17pm

    An article some of you might find interesting. What’s special about January 2006? It‘s the exact time the Dems took over both the House and the Senate and Ol’ stretch face Pelosi said she was going to fix the high cost of gas in this country.

    http://articles.cnn.com/2006-01-22/us/gas.prices_1_lundberg-survey-gas-prices-trilby-lundberg?_s=PM:US

    Report Post »  
    • maxinerwb
      Posted on October 10, 2011 at 4:35pm

      Au contraire:

      I think it was Nasty Pelosi who made the prices go up. Looking at her face would scare the bejesus out of anyone. By the way, can’t wait for San Fran to fall off into the ocean.

      Report Post »  
    • kalmak
      Posted on October 10, 2011 at 5:07pm

      @Maxine
      That was my point. They complained that Bush was in the pocket of the oil companies but now we are happy that our gas prices are $1 more than they were when the dems took over.

      Report Post »  
    • Justthefactsmam
      Posted on October 10, 2011 at 5:57pm

      Actually the democrats didn’t take over congress until January 2007, and when President Obama took office in January 2009, gas prices were about $1.87

      Report Post » Justthefactsmam  
  • South Philly Boy
    Posted on October 10, 2011 at 3:17pm

    Gas is priced too high… a more reasonable price is $1.99 a gal

    Report Post » South Philly Boy  
    • Fly Old Glory 24/7 365
      Posted on October 10, 2011 at 3:38pm

      less than 16 months ago we were upset when gas got to $3 and now we are thrilled when gas gets to $3. Pray it continues to drop somehow..

      Report Post »  
  • Kentuckyboy
    Posted on October 10, 2011 at 3:15pm

    In Harrisonburg, VA. Friday gas was $3.19 a gal.

    Report Post »  
    • Champ
      Posted on October 10, 2011 at 4:06pm

      In Iowa, Ethanol is subsidized. Our 89 octane “super unleaded” gas (10% ethanol) is currently $3.16 (in Des Moines) E85 (85% ethanol) is even cheaper. I think around $2.80, but not sure because I don’t have a flex fuel vehicle.

      Report Post »  
    • The BRAIN
      Posted on October 10, 2011 at 5:35pm

      10/07/11 Council Bluffs, Iowa – across the river from Omaha:
      E85 2.99
      Diesel 3.65
      E10 3,06 (91 octane)
      Regular 3.16 (89 octane)
      Premium 3.33
      BP Station
      To be worth the effort, E85 has to be 15% to 30% cheaper depending on the vehicle’s efficiency.

      Report Post » The BRAIN  
  • jmgair
    Posted on October 10, 2011 at 2:58pm

    Here in Princeville, Hawaii we get to pay $4.85/ gallon and $5.28/gallon for diesel. Like Don king used to say “Only in America”.

    Report Post »  
    • wboehmer
      Posted on October 10, 2011 at 3:36pm

      Yeah, but you can hardly drive anywhere in Hawaii anyway!

      Report Post »  
    • kaimana
      Posted on October 10, 2011 at 6:50pm

      I’m hoping it will climb to $10/gal. Get all the cars off the road and blame the dems for their ridiculous taxes imposed on gas.

      Report Post »  
    • decendentof56
      Posted on October 10, 2011 at 7:24pm

      Hawaii…..
      Isn’t that the place where the weather is the same virtually all the time?
      Get a scooter or small-displacement (250cc) motorcycle.
      Scooters= 60-100 mpg depending on the size engine.
      small m/c= 60-70 mpg
      There is great clothing fto stay dry and save your skin if you should fall.

      Report Post »  
  • Ironeagle
    Posted on October 10, 2011 at 2:46pm

    Wyoming = $3.25 per gal

    Report Post » Ironeagle  
    • Fly Old Glory 24/7 365
      Posted on October 10, 2011 at 2:55pm

      Columbia SC we are seeing right at $3 a gallon. I been putting just $10 in when I need gas cause it will go down the next day.

      Report Post »  
  • Anonymous T. Irrelevant
    Posted on October 10, 2011 at 2:35pm

    Go away!

    Report Post » Anonymous T. Irrelevant  
  • Anonymous T. Irrelevant
    Posted on October 10, 2011 at 2:34pm

    $3.25, 30 miles east of Cincinnati and it’s probably 5 cents cheaper there.

    Report Post » Anonymous T. Irrelevant  
  • OklahomaBound
    Posted on October 10, 2011 at 2:32pm

    I moved to Oklahoma City from the Socialist Republic of Washington (near Seattle) 13 months ago and noticed the big difference in gas prices right away. A big part of that difference was the difference in gas taxes (OK-17 cents / WA 37.5 cents per/gal), the reason being OK is a capitalist red state with far fewer left-wing entitlement programs and unions to pay for than WA where tax dollars are used to buy votes from the welfare left. Another improvement was that OK also has stations that sell 100% gas, which before moving here I did not even realize existed. Ethanol in your gas robs you of horsepower, destroys your engine and lowers your fuel mileage so I’m happy to pay a few extra cents at stations that provide 100% gas. God Bless Oklahoma!

    Report Post » OklahomaBound  
    • boston-rightwinger
      Posted on October 10, 2011 at 3:15pm

      While everyone is focusing on Arizona ‘s new law, look what Oklahoma has been doing!!!!

      An update from Oklahoma :

      Oklahoma law passed, 37 to 9, had a few liberals in the mix, an amendment to place the Ten Commandments on the front entrance to the state capitol. The feds in D.C., along with the ACLU, said it would be a mistake. Hey this is a conservative state, based on Christian values…! HB 1330

      Guess what………. Oklahoma did it anyway.

      Oklahoma recently passed a law in the state to incarcerate all illegal immigrants, and ship them back to where they came from unless they want to get a green card and become an American citizen. They all scattered. HB 1804. Hope we didn’t send any of them to your state. This was against the advice of the Federal Government, and the ACLU, they said it would be a mistake.

      Guess what………. Oklahoma did it anyway.

      Recently we passed a law to include DNA samples from any and all illegal’s to the Oklahoma database, for criminal investigative purposes. Pelosi said it was unconstitutional SB 1102

      Guess what…….. Oklahoma did it anyway.

      Several weeks ago, we passed a law, declaring Oklahoma as a Sovereign state, not under the Federal Government directives. Joining Texas , Montana and Utah as the only states to do so.

      More states are likely to follow: Louisiana, Alabama, Georgia, the Carolina’s, Tennessee, Kentucky, Missouri, Arkansas, West Virginia, Mississippi, Florida. Save your confederate mon

      Report Post »  
    • Okie from Muskogee
      Posted on October 10, 2011 at 3:40pm

      There is only one Oklahoma!!!! Great posts! 

      Report Post » Okie from Muskogee  
    • SlimnRanger
      Posted on October 10, 2011 at 3:56pm

      WEll i’am proud to be an Okie south of Muskogee,A place where Christians can still pray and live our lives in the good old fasshioned way. We don’t like Pre. Obama nor do we allow the liberals tell us we can’t respect our Mama,We still raise cattle, horses, pigs and chickens,we believe Eric Holder needs an a$$ kickin,Yeah we may be called a red state but at least our kids always have food on their plate,
      O.K.L.A.H.O.M.A. your more than OK!

      Report Post »  
    • maxinerwb
      Posted on October 10, 2011 at 4:34pm

      Congratulations. I wouldn’t live on either coast, they are fixing to fall off into the ocean.

      Report Post »  
    • BurntHills
      Posted on October 10, 2011 at 4:47pm

      sorry folks , that post from boston is a total reprint off the snopescom site, it is a mixture full of halftrue misinformation. like they passed a RESOLUTION for sovereignity, not a law, etc

      Report Post » BurntHills  
    • UPSETVET
      Posted on October 10, 2011 at 5:49pm

      I‘m a native Texan and in the 1950’s a paid $.06 a gallon for regular gasoline, premium was $.08 but nobody used premium in those days. For the past 38 years I’ve lived in Brazil and here a gallon of gasoline cost around $6.10.

      Gasoline in Brazil has a mixture of 22 % etanol. It started out years ago at 5 % and has been increased every few years. Alcohol is a major alternative fuel here but gasoline is prefered by most because of the mpg.

      Alcohol sells for around half the price of gasoline but gets less than half the mpg and is harder on engines. Brazil has the largest petroleum reserves in the Americas and is also a major exporter. So why is gas so expensive?

      That’s what all Brazilians would like to know. Very high federal taxes is the main reason. Gasoline in some European countries is as high as $10-$12 a gallon. So it could be worse in the USA and the future doen’t look any brighter.

      Report Post »  
  • djhrr
    Posted on October 10, 2011 at 2:31pm

    OK I wish the Blaze did their own homework. I drove through Ohio last week and paid $3.09 Not just in one place but throughout the state!…. Hey Blaze stop depending on outside sources. they have shown themselves to be wrong more often than not!

    Report Post »  
    • djhrr
      Posted on October 10, 2011 at 2:35pm

      Ok after clicking the link I found Ohio… Still would Like the Blaze to do their own work!

      Report Post »  
    • Fly Old Glory 24/7 365
      Posted on October 10, 2011 at 2:54pm

      yes Blaze, you need to call 50 gas stations in every state and get it right….bwahahahaha

      Report Post »  
    • MARCH4HIM
      Posted on October 10, 2011 at 3:05pm

      it woulnt be a big deal If ….Ohio… wasnt ranked……# 1…….flyoldglory.

      Report Post » MARCH4HIM  
    • MARCH4HIM
      Posted on October 10, 2011 at 3:07pm

      my bad 3rd……..

      Report Post » MARCH4HIM  
    • Fly Old Glory 24/7 365
      Posted on October 10, 2011 at 3:44pm

      yep, Ohio is #3 on the list less than $.10 more than the $3.09 stated. Okay. What is the big deal again? What are we talking about?

      Report Post »  
    • maxinerwb
      Posted on October 10, 2011 at 4:33pm

      Oh shut up already. TROLL

      Report Post »  
  • cessna152
    Posted on October 10, 2011 at 2:23pm

    These are the 10 States With the Cheapest Gas… well, that’s an “oxymoron” if I ever saw one.

    Report Post » cessna152  
  • Warphead
    Posted on October 10, 2011 at 2:20pm

    You want to set the economy on fire then give the people inexpensive fuel. Get rid of all the government taxation, drill here in the USA and get our own fuel and put large numbers of Americans to work. Last but certainly the most important, take the first environmental whacko who starts squawking and beat the the living daylights out of him. The taxation and enviro-whacko’s have nearly destroyed this nation. Why? Because that’s what they want to do. They are traitors. Nothing more, nothing less.

    Report Post » Warphead  
    • OklahomaBound
      Posted on October 10, 2011 at 2:34pm

      You nailed it WARPHEAD.

      Report Post » OklahomaBound  
    • Fly Old Glory 24/7 365
      Posted on October 10, 2011 at 3:32pm

      Warphead: seriously, would you stop with the common sense thing. It will never work. Common sense, what the hec are you thinking? Seriously, tell me one thing that worked using common sense? Common sense is overrated. :)

      Report Post »  
    • ConservativeOkieGirl
      Posted on October 11, 2011 at 4:41am

      Well if Obama, by executive order, didn’t declare a bunch of land in the west as “national parks” then we would be able to drill more in this country. That goes for the Gulf of Mexico too. He‘ll let Brazil drill there but he won’t let the US drill. Makes a lot of sense, huh?

      My dad found a receipt the other day from a Sinclair station where he paid $0.33. Of course that was back in the 70′s. When I turned 16 and started driving, back in ‘94, gas prices were a little over $1.00. I’d be ecstatic if they were just that again.

      Report Post »  
  • TennBill
    Posted on October 10, 2011 at 2:10pm

    I live in Tennessee and the price of gas is now $3.22. Last Thursday it was $3.10. Seems to me that someone is taking advantage. By the way, home prices in my area are staying up and property taxes are really low.

    Report Post »  
  • Seede
    Posted on October 10, 2011 at 2:08pm

    Hey people -
    All they are doing is dumping the stale gas before it gets unusable. The big wigs always do this so don’t count on a big heart from these thieves. It’s just business as usual.

    Report Post »  
    • SovereignSoul
      Posted on October 11, 2011 at 1:25pm

      @IMOLARED I completely forgot about the Green Stamps. My Grandma bought my first .22 rifle with green stamps!

      Report Post » SovereignSoul  
  • Sirfoldallot
    Posted on October 10, 2011 at 2:07pm

    I at 1 time payed .35 cents a gallon, wow I’m only 55.

    Report Post » Sirfoldallot  
    • SovereignSoul
      Posted on October 10, 2011 at 2:22pm

      I remember those days. And my car got about 7 mpg! Not really sure because we didn’t keep track. I can remember Dad filling up the Buick for 16 cents per gallon.

      Report Post » SovereignSoul  
    • Vietvet1
      Posted on October 10, 2011 at 2:27pm

      Here, in PA we had gas wars when I was younger. I remember my Uncle loading us kids in the back of our pickup and bouncing off with 55 gallon drums and filling up at $ .19 a gallon…. for the tractor and other gas drinking machines we had on the farm. Good times, good memories…even with the hard work. I miss those days

      Report Post »  
    • Cat
      Posted on October 10, 2011 at 2:45pm

      SIRFOLDALLOT
      Do remember .36 cents a gallon, and muscle cars that ate fuel like blast furnaces.
      The most active needle on the instrument cluster of the 67 Olds 442 was the gas gauge needle.

      Report Post » Cat  
    • imolared
      Posted on October 10, 2011 at 3:35pm

      Shoot, try $.19, full service during the “gas wars” AND Green Stamps too!!

      Report Post »  
    • Fly Old Glory 24/7 365
      Posted on October 10, 2011 at 3:46pm

      dang, you ppl are old….

      Report Post »  
    • Cat
      Posted on October 10, 2011 at 4:10pm

      Old enough to own some nice cars over the years
      The favorite was the 67, 427/435BHP Tri-Power, Corvette Stingray.
      WAYYYY too much power for that car, especially with 6” of tread on the ground at each of the four points.
      Recall there was only 800, maybe 815 of them made.
      It ate gas FAST, and Goodyear Redlines even faster.
      One DID NOT become impaired, then drive that car.
      Nor did one even think about messing with their date in the cockpit, at least while the vehicle was moving!
      Owned it for a VERY short time then bought the 442, then a 75 Corvette.

      Report Post » Cat  
    • kentuckypatriot
      Posted on October 10, 2011 at 4:33pm

      I remember my brother getting .50 in gas for his little MGB. I think it filled it up. Dam, to have that car again……….. and the gas prices!

      Report Post » kentuckypatriot  
  • Okie from Muskogee
    Posted on October 10, 2011 at 2:05pm

    Oklahoma is a great place to live. Low cost of living and wide open ranges! Honored to be an Okie!!! 

    Report Post » Okie from Muskogee  
    • SlimnRanger
      Posted on October 10, 2011 at 7:41pm

      Same here Okie, but Oklahoma has been getting alot of CA. folks moving in the last few years,some are good decent folk while many others would love to try to push their very liberal views on us,they just can’t handle the easy going laid back life style here

      Report Post »  
    • Okie from Muskogee
      Posted on October 10, 2011 at 8:54pm

      @SlimRanger

      Yup and they keep coming. Being an Okie I ain’t worried. Okie‘s don’t budge. We just gotta stand in truth and slap them around with ideas is all. Little more work for us but we Okies will make it. Keep up the food fight and stay safe! 

      Report Post » Okie from Muskogee  
  • Glasslass
    Posted on October 10, 2011 at 2:04pm

    And if you buy your gas at Sam‘s it’s at least 10 to 12 cents lower. I bought gas 3 days ago for $3.12.

    Report Post »  
  • cayenne523
    Posted on October 10, 2011 at 2:00pm

    Let’s get it back to $1.50 a gallon. Drill in America and off our shores.

    Report Post »  
    • cessna152
      Posted on October 10, 2011 at 2:21pm

      The cr@pping of the dollar also is cause for concern of gas prices. Also, lack of new refineries, regulations, pay offs, etc.

      Report Post » cessna152  
  • nonofmybiznez
    Posted on October 10, 2011 at 1:59pm

    Tucson Arizona has been steadily around $3.19 to 3.23 for last month or more. We have had some spikes, but it drops back down.

    Report Post » nonofmybiznez  
    • amerbur
      Posted on October 10, 2011 at 3:44pm

      Regular in Idaho is $3.79 to $3.69 for month – What the ___?

      Report Post »  
  • M 4 Colt
    Posted on October 10, 2011 at 1:56pm

    Now if only food will do the same thing and go down in price

    Report Post »  
    • SLOWBIDEN
      Posted on October 10, 2011 at 2:26pm

      If the price of fuel goes down the cost of food will also drop. It costs fuel to transport food and goods in this country. The cost of fuel affects the cost of everything.

      Report Post »  
    • Anonymous T. Irrelevant
      Posted on October 10, 2011 at 2:38pm

      I doubt that. Once the price of food goes up, it seems to stay, unlike gas.

      Report Post » Anonymous T. Irrelevant  
  • M 4 Colt
    Posted on October 10, 2011 at 1:55pm

    Yes cheap gas again

    Report Post »  
    • Blackhawk1
      Posted on October 10, 2011 at 3:46pm

      We won’t have cheap gas again until Obama is gone.

      Price per gal 29 Dec 2008. $1.61

      Price per gal 26 Jan 2009 $1.84

      It’s been going up ever since the Obama Emaculation.

      Report Post » Blackhawk1  
  • angelcat
    Posted on October 10, 2011 at 1:55pm

    I paid $3. 09 for gas here in the Houston area yesterdat,

    Report Post »  
  • mlebates
    Posted on October 10, 2011 at 1:54pm

    Anyone else only count 7 on this “top 10 list”?

    Report Post »  
    • xoke
      Posted on October 10, 2011 at 2:06pm

      See The Rest of The List Here:

      Report Post » xoke  
    • elation
      Posted on October 10, 2011 at 2:16pm

      There is a link to see the remaining of the top ten, which points to the original site with the article.

      Report Post »  
  • bikermama
    Posted on October 10, 2011 at 1:52pm

    Yes, it is nice seeing gas down to $3.14 this week here in Tuscaloosa, Al. But, still it is way overpriced. The cost per barrel of oil drops far quicker than the price per gallon. Its time to drill here, now. And not just for the cost per gallon, but for security reasons, when is Washington ever gonna get that.

    Report Post » bikermama  
  • Biff Marupis
    Posted on October 10, 2011 at 1:51pm

    Awwww…yessss…..I love living in the south!

    Report Post » Biff Marupis  
  • nacilbuper
    Posted on October 10, 2011 at 1:50pm

    Fill’er up today boys. This won’t last long.

    Report Post » nacilbuper  
1 2 3

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love