Where Is The Cheapest Gas In The US? (Gas Prices By State)

Where Is The Cheapest Gas In The US

Currently, the cheapest gas in the US is found in Texas, where the average for regular gas is presently priced at $3.76 per gallon, according to the AAA. Alongside Texas, many other Southern states have similarly low gas prices, mainly because they are close to the refineries that produce the gas.

In the following article, we cover everything you need to know about where to find the cheapest gas in the US, along with some of the most frequently asked questions about gas prices in the US and around the world.

Where is the cheapest gas in the US?

According to the AAA, the cheapest average gas prices in the US are currently to be found in Texas, where regular gas retails for $3.76 as of the end of July 2022.

Texas currently also has the lowest diesel price at $4.78 per gallon, the lowest mid-grade price at $4.15, and the second lowest premium price at $4.47.

Alongside Texas are other Southern states like Georgia and South Carolina, which share some of the lowest average gas prices currently in the US. Currently, there is very little between gas prices across the US. Sometimes, there is only a fraction of a cent between prices in states.

The AAA’s list of ten cheapest gas prices at the moment is as follows:

  • Texas: $3.76,
  • South Carolina: $3.78,
  • Georgia: $3.80,
  • Mississippi: $3.82,
  • Arkansas: $3.83,
  • Tennessee: $3.83,
  • Alabama: $3.83,
  • Oklahoma: $3.85,
  • Louisiana: $3.86,
  • Kentucky: $3.88.

Gas prices are fluctuating constantly at the moment, and this is no different in one of these states.

As circumstances around travel continue to change, gas prices are likely to continue to fluctuate in response.

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Why is gas cheaper in Texas?

Gas is typically cheaper in Southern states like Texas because they are closer in location to the refineries that produce the gas.

This means that there are less expenses involved in the distribution and delivery of the gas to stations throughout Texas, allowing for cheaper purchase prices as there are less overheads to cover.

In states that are further from these refineries, higher gas prices are reflective of this distance.

Things like shipping and distribution costs are higher to transport gas to further states, meaning these expenses have to be covered by higher price points.

Where is the highest gas price in the US?

Currently, the highest gas price is in California, where it retails for $5.63 at the moment. Typically, the highest prices will be seen in states furthest geographically from the oil refineries, meaning costs are higher to transport and distribute the gas.

Let’s look at the top ten states with the highest gas prices currently, as listed by the AAA:

  • California: $5.63,
  • Hawaii: $5.47,
  • Alaska: $5.14,
  • Nevada: $5.09,
  • Oregon: $5.09,
  • Washington: $5.04,
  • Idaho: $4.93,
  • Utah: $4.85,
  • Illinois: $4.70,
  • Maine: $4.59.

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Is gas higher in city or rural locations?

Typically, gas prices are higher in city locations, where things like state fees and taxes can increase the price.

Some cities also require cleaner-burning fuel, which can raise the prices of gas possibly in a bid to discourage use. 

In more rural locations, gas is likely sold much less frequently, and so lower volumes of fuel are needed to supply for the area. This means costs are lower and so prices can be lowered to reflect this.

How can you check gas prices near you?

Gas prices are constantly changing, so keeping on top of them can seem like a difficult task. Fortunately, there are many apps out there to help you track gas prices and take advantage of low prices.

One of the most popular and well-known apps for tracking gas prices is GasBuddy, a free app that lets you search gas stations by price and distance, allowing you to find the nearest and cheapest gas prices.

What’s more, the app can be accessed through Apple, Google, and Windows phones.

Alternatively, Gas Guru is another free app that allows you to search for low gas prices.

Not only does this app show you ‘nearby’ stations when searching, but it also notifies you of when gas prices were last updated, so you can be sure you are getting up-to-date information.

Some websites will also help you find the cheapest gas prices. Websites like GasPriceWatch and AAA feature gas-monitoring sections that are updated constantly to reflect changing prices.

The information on these websites tends to be more general rather than specific.

How can you save money on gas?

Possibly one of the best ways to save money on gas is to reduce how much you are using in the first place.

This might mean switching to a more efficient vehicle or reducing the amount you are driving. This isn’t always possible, but it’s worth trying if you find you are spending too much money on gas. 

To save money on gas, consider joining a fuel reward program. These programs are offered by many grocery store chains like Kroger and Safeway and allow you to earn discounts on gas when you make purchases.

Some fuel companies allow you to save money on fuel purchases by offering gas credit cards. These cards usually offer a certain monetary reward for every gallon of gas you purchase.

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Cheapest Gas Price FAQs

What is the current average gas price in the US?

According to the AAA, the current national average price for regular gas is $4.25, although this is changing on a daily basis and is likely to continue to do so for some time to come.

Why have gas prices increased recently?

Gas prices have seen a sharp increase since traveling restarted following restrictions from the pandemic. As more and more people resumed traveling, the demand for gas increased substantially, which affected its retail price.

Will gas prices ever decrease?

Gas prices are likely to eventually decrease, but this may not happen for some time yet. As supply is running low, the costs of production are increasing, which is reflected in the price at the pump.

As supply eventually picks up, prices are likely to drop again.

Who decides gas prices in the US?

There is no governing body that decides the price of gas in the US. Instead, gas prices are mostly determined by supply and demand, and the costs that come with refining oil to produce gasoline.

As costs increase, the price will also increase to cover these overheads.

What is the highest ever gas price?

The highest ever average for gas price was $4.114 per gallon, which was recorded by the AAA in July 2008.

This was prior to 2022, when gas prices have seen a massive increase in price, and many places have seen their highest prices ever.

What is the lowest ever gas price?

The lowest gas price recorded was $2.14 per gallon, which was reported in 2016. This drop in price was likely due to a decrease in crude oil prices, which had dropped by around 50% at this time.

Which countries have the cheapest gas prices?

Venezuela currently holds the title of cheapest average gas price, with gas retailing for $0.02 per liter, or around $0.08 per gallon.

Libya and Iran follow closely behind at $0.12 and $0.20 respectively.

Which country has the highest gas prices?

Currently, Hong Kong has the highest gas prices in the world, with one gallon retailing for an average of $11.35 in American dollars. 

Final Thoughts

Texas currently has the cheapest gas prices in the US, with the AAA reporting that gas is retailing for $3.76 per gallon.

Similarly low prices can be found across the South of the US, while higher prices are seen in states which are located further away from the oil refineries.

Gas prices are fluctuating all the time, yet Texas remains one of the cheapest states.





Jeff is an automotive technician, technical writer, and Managing Editor. He has held a lifelong passion for cars, with a particular interest in cars like the Buick Reatta. Jeff has been creating written and video content about transportation, automotive, electric cars, future vehicles as well as new, used for more than 18 years. Jeff is based in Boulder, Colorado.

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