In this article, we are going to discuss the 25 states with the highest gas prices. You can skip our detailed analysis of the global oil and gas market, the reason why gas is cheaper in America in comparison to other developed countries, and the total refining capacity of the United States, and go directly to the 10 States With the Highest Gas Prices.
America is the world’s leading producer of oil, accounting for 14.7% of the overall world crude production in 2022. Having the luxury of local production means that oil and gas are readily accessible and affordable for mass distribution. While this may not seem like it directly impacts the average oil and gas consumer, the truth is that it does in a massive way. Every year, the indigenous production of oil and gas helps save American consumers an estimated $203 billion, or $2,500 for each family of four. Moreover, the oil and gas industry also supports over 12 million American jobs, provides billions of dollars in tax revenue, and ensures energy security.
Global Oil and Gas Market:
As we mentioned in our article – 20 Biggest Oil Producers in the World – the global oil and gas market was valued at $6.99 trillion in 2022, and is expected to grow to $8.67 trillion by 2027, with a CAGR of 4.4% during the forecast period. The largest region in the global oil and gas market share is Asia Pacific, with North America coming in second.
The primary factors driving the growth of the industry include the rising demand for oil and gas, growing competition in the industry, financial capital, and public scrutiny. Furthermore, the rising oil and gas exploration activities and the increase in prices globally are also anticipated to drive the industry’s growth.
Why Gas is so Cheap in the U.S.:
As a general rule, richer countries have higher gas prices, while the prices in poorer countries or countries that produce and export oil are significantly lower. However, the U.S. is an exception to this and has surprisingly cheaper gas, despite being among the Richest Countries in the World. The principal reason for this is that gas taxes have always been exceptionally low in America. The federal gas tax was first charged in 1932 at 1 cent per gallon and is now at 18.4 cents a gallon, but this tax has remained unchanged since 1993.
As of April 14th 2024, the average price of gasoline in the United States stands at $3.632 per gallon, against the global average of around $5.1. Colorado is the state where gas is cheapest in the U.S., at an average of only $3.072 per gallon.
Total Refining Capacity of the United States:
With a total oil refining capacity of 18.1 million barrels per day (bpd), the United States is the Country with the Largest Refining Capacity in the World. As of January 2023, there were 129 operable refineries in the country, down from 130 at the beginning of the previous year. This reduction is due to the closure of a small plant in Santa Maria, CA, which had a crude oil distillation capacity of 9,500 bpd. However, despite this closure, the total U.S. capacity witnessed a YoY increase because PBF Energy reactivated a previously retired crude oil distillation unit at its refinery in Paulsboro, NJ.
But the major reason why the country’s total refining capacity has recently gone up is the successful startup of the Beaumont Refinery Project by The Exxon Mobil Corporation (NYSE:XOM), which has added 250,000 bpd of capacity to one of the largest refining and petrochemical complexes along the U.S. Gulf Coast. Completed in March 2023, the $2 billion project is the largest refinery expansion in the country since 2012 and will help meet the growing demand for affordable, reliable energy. The added volume in Beaumont increased its total processing capacity to more than 630,000 bpd, making it one of the Largest Refineries in the US.
The Exxon Mobil Corporation (NYSE:XOM)’s integrated operations in Beaumont also include chemicals, lubricants, and polyethylene plants. The oil major has nearly 2,100 employees in the area, with its operations accounting for approximately 1 in every 7 jobs in the region.
The Exxon Mobil Corporation (NYSE:XOM) is included among the Best Cheap Dividend Stocks to Buy Right Now.
With that said, here are the States with the Most Expensive Gas in the U.S.
A truck parked at a gas station, its fuel tank being filled from a pump.
Methodology:
To collect data for this article, we have referred to AAA, looking for the states with the highest gasoline prices. The following states have been ranked by their average price of gas as of April 14th 2024
If you also want to check out which countries have the most expensive gas, here are the 30 Countries with the Highest Gas Prices in the World.
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25. North Dakota
Price of Gas per Gallon: $3.41
Gas prices have gone up recently in North Dakota mainly due to the seasonal maintenance that a number of refineries undergo around this time of year. The oil and gas industry in ND remains a powerhouse for the state’s economy, accounting for more than $42.6 billion in gross business volume, nearly 50,000 jobs, and $3.8 billion in state and local tax revenues in 2021.
24. Vermont
Price of Gas per Gallon: $3.426
The average gas price in Vermont has risen by almost 5% since last month, when it stood at $3.26. It is a usual sight for gas prices to go up with the arrival of the spring season as retailers switch to the ‘summer blend’ – a mixture of fuel that is more expensive but gives better mileage.
23. Maine
Price of Gas per Gallon: $3.428
Gas prices have been going up in the Pine Tree State mainly due to the increasing demand and the uptick in global crude oil prices. Maine charges a state fuel tax of 30 cents per gallon, which is used to pay for road repairs, snow plowing, bridge maintenance, and also for the upkeep of its public ferry services.
22. Georgia
Price of Gas per Gallon: $3.43
One of the reasons why gas prices are up in Georgia is because of the restoration of the state gas tax of 29.1 cents per gallon. Gov. Kemp first ordered the suspension of the tax back in September 2023, declaring that high prices and uncertain economic conditions were causing a state of emergency in the Peach State, and then also extended the suspension twice after that. However, the gas tax was restored at the end of November last year.
21. Connecticut
Price of Gas per Gallon: $3.498
The average gas price in Connecticut has risen by around 5.8% since a month ago, when it stood at $3.304. The rising prices of crude oil in the international market and high consumer demand are the major reasons for this uptick.
Connecticut sits at number 21 among the States with the Highest Gas Prices in 2024.
20. Virginia
Price of Gas per Gallon: $3.501
Virginia has minimal domestic oil production of its own, producing only 7,267 barrels of crude oil in 2022, up about 16.7% from the previous year. Virginia increased its state gas tax from $0.28 to $0.298 per gallon in July 2023.
19. New York
Price of Gas per Gallon: $3.507
Fuel prices are generally higher in New York because of the state’s tax structure, and without a local refinery, delivery costs are also driven up. The Empire State produces a small amount of natural gas and crude oil, and as a result, is dependent on energy supplies from out of state to meet about three-fourths of its energy needs.
18. Florida
Price of Gas per Gallon: $3.517
Keeping up with the global trends, Florida’s average gasoline price has gone up by almost 5 cents since last week. The cheapest gas in the Miami area is going for around $2.35 per gallon, and the most expensive for $4.99.
Florida is ranked 18th among the States with the Highest Price of Gas.
17. West Virginia
Price of Gas per Gallon: $3.543
Although the average gas price in the Mountain State has soared by almost 28 cents per gallon since last month, it’s still below the $3.57 price from a year ago. As we stated in our article – Oil and Gas Production by State: Top 15 – the oil and gas industry supported more than 73,000 jobs and contributed nearly $13 billion to West Virginia’s economy in 2021.
16. Montana
Price of Gas per Gallon: $3.594
Montana is a small market, so the refineries don’t have any competition even amongst each other and can jack up prices on local retailers. Transportation is another big factor that contributes to the high cost of gas, as everything is a little more spread out in the Treasure State.
15. Indiana
Price of Gas per Gallon: $3.604
A major reason for the recent uptick in Indiana’s gas prices was the temporary shutdown of its BP oil refinery complex due to a plant-wide power outage on February 1st. After six weeks of closure, Midwest’s largest oil refinery finally resumed operations last month.
14. Maryland
Price of Gas per Gallon: $3.684
Although Maryland increased its gas tax from 42.7 cents to 47 cents per gallon last July, the state is contemplating moving to a surcharge based on the number of miles driven, instead of a fixed motor fuel tax.
Maryland ranks 14th in our list of States with the Most Expensive Gas.
13. Michigan
Price of Gas per Gallon: $3.691
The average gasoline price continues to soar in the Great Lake State mainly due to the growing demand and tighter supply. At $0.3 per gallon, the average Michigan driver pays about $400 in gas tax annually, contributing to things like transit, public roads, and bridges etc.
12. Pennsylvania
Price of Gas per Gallon: $3.724
The Keystone State helped alleviate some pain at the pump this year by decreasing its state gas tax from 61.1 cents per gallon to 57.6 cents. However, it is still placed among the States with the Highest Gas Tax in America.
11. District of Columbia
Price of Gas per Gallon: $3.738
The average gas price in DC has gone up by almost 4.5% since a month ago, when it stood at $3.575. The District of Columbia has no crude oil reserves or refineries, and consumes less petroleum per capita than any state.
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Suggested Articles:
- 15 States with the Largest Oil Reserves in the US
- 20 Biggest Oil Producers in the World
- Oil and Gas Production by State: Top 15
Disclosure: None. 25 States With the Highest Gas Prices is originally published on Insider Monkey.