Americas

Here’s Where Gas is the Most Expensive in the U.S.

California has the most expensive gas in the U.S., followed by Hawaii. The cheapest gas prices are in Gulf Coast states like Mississippi and Texas.

Globely Staff

April 27, 2023

hawaii california gas prices most expensive in us

Hawaii and California have the most expensive gas in the U.S., according to AAA.

The national average price of a gallon of regular gas continues to creep back up after falling from last year’s high of $5.02, recorded in June. As of April 27, 2023, a gallon of regular gasoline costs on average $3.64, according to the American Automobile Association (AAA), which tracks fuel prices.

The decline since last year has been a relief for Americans who’ve been reeling under inflation, which hit a 40-year high in the United States last June. But the relief may be short-lived.

At the start of the year, the U.S. Energy Information Administration projected gas prices to fall into the end of 2024, with the average price of regular gas dropping to below $3 a gallon. However, the OPEC+ cartel decided to cut production earlier this month, sending crude oil prices higher. Goldman Sachs raised its projection for Brent oil prices to $95 a barrel for December 2023 and $100 a barrel for December 2024. Brent is currently trading at just over $80 a barrel.

Given the huge variation in gasoline prices across the United States, the pain will be unequally distributed. And the effects on both the cost of living and transport choices for lower and middle-income Americans are significant.

most expensive gas in the us prices by state — A heat map indicating where gas is most expensive in the U.S. based on data from the AAA.

California and Hawai Have the Most Expensive Gas in the U.S.

California has the most expensive gas in the U.S. Today, a gallon of regular gasoline averages $4.88 in California.

California had recorded the highest gas prices in the U.S. in the early part of last summer, only to be overtaken by Hawaii. Then in March, California regained its status as the state with the most expensive gas in the U.S.

Still, Hawaiians, like Californians, are still paying close to $5/gallon for regular gas. The price of a gallon of regular gas in Hawaii is the second-highest in the country, averaging $4.78 today. David Hackett, an energy industry consultant, says gas prices in Hawaii tend to be “very sticky on the downside.” It’s no surprise that Hawaii has the highest cost of living among U.S. states, according to the Council for Community & Economic Research survey.

Why is Gas So Expensive in Arizona?

Arizona now has the third-highest gas prices in the country, with a gallon of unleaded averaging $4.70 in the state. Gas prices in Arizona have surged by more than 40 cents a gallon in the past three weeks alone. The reason: maintenance at refineries in Texas and New Mexico, where some parts of Arizona get their gasoline from. Arizona has no petroleum refineries and relies on fuel from outside the state.

Arizona requires a cleaner burning gasoline (CBG) formulation in some parts of the state at varying times of the year to maintain air quality. Some areas of Arizona are making a seasonal shift toward the more expensive CBG. As a result, there’s significant variation in gas prices within the state itself. In Phoenix, the average price of unleaded gasoline is over $5 a gallon, while in Yuma it’s below $4 per gallon.

Cheapest Gas in the U.S. Is in Texas

The lowest gas prices in the U.S. are in Mississippi, averaging at $3.12/gallon — more than $1.70 cheaper than that of California and Hawaii.

Gas prices in Texas had recently fallen below $3/gallon, but have now trickled back up to $3.23.

The cheapest gas in America tends to be in the Gulf Coast states, where gas taxes are low and the greatest concentration of U.S. refining capacity is located.

As the map above shows, gas prices tend to fall into regional clusters. Gas is cheapest in the south and most expensive on the west coast.

Why California Gas Prices Are So High

High gas prices are one reason why you’ll see a lot of Teslas on road in California. And that’s by design. A major driver of why gas prices are higher in California is state taxes. In California, gas taxes are about fifty percent higher than the national average, according to the American Petroleum Institute.

Federal and state taxes, on average, make up around 17 percent of the cost of a gallon of regular gas at the pump, according to the U.S. Energy Information Agency.

California is a leader in environmental regulations. By making gas less affordable, the state aims to incentivize a transition toward hybrid and all-electric vehicles. But gas taxes are regressive. The driver of a used Corolla pays the same amount as the driver of a luxury vehicle (though the latter probably would need premium fuel). While public transportation is a great equalizing force, its availability is uneven across the state.

And so it’s no surprise that California has seen a population exodus due to the rising cost of living and states like Texas, where gas and the overall cost of living are comparatively cheaper, is experiencing a population boom.

States With the Most Expensive Gas in the U.S.

These are the states and territories with the most expensive gas in the United States. The prices listed are for the state-wide (or territory-wide) average of a gallon of regular gasoline on April 27, 2023, according to the AAA.