Gas prices in the United States are creeping back up after their descent from last April’s high of $3.67 per gallon. As of February 12, 2025, a gallon of regular gasoline costs on average $3.15, according to the American Automobile Association (AAA), which tracks fuel prices.
That’s far below the record high of $5.02 recorded in June 2022, but rising costs still weigh on the working class as inflation continues to eat into the purchasing power of the average American.
Inflation hit a 40-year high of 9.1% in the U.S. in June 2022. It’s since fallen, but remains sticky at around 3%.
Will Gas Prices Go Down?
The U.S. Energy Information Administration (EIA) forecasts the price of regular gas to average $3.20 per gallon in 2025, down $.10 from 2024, and to fall another $.10 in 2026.
Production cuts by the OPEC+ cartel since April have failed to sustain high oil prices. Brent crude is currently trading at around $76 a barrel. The EIA forecasts Brent oil to average $74 in 2025, down from $81 last year.
Two factors could drive retail gas prices higher in the U.S.: disruptions to oil refining and tariffs on Canadian oil — if President Donald Trump follows through on his threats to impose them.
Gas prices, however, vary greatly across the United States. And that has a big effect on both the cost of living and transport choices for lower and middle-income Americans.

Californians Pay the Most for Gas in America
California has the most expensive gas prices in the U.S. Today, a gallon of regular gasoline averages $4.74 in California, which is painful, but not quite the $6 per gallon in September 2023.
High gas prices are one reason why you’ll see a lot of Teslas and electric vehicles on the road in California. And that’s by design. Taxes are a major reason why gas prices are so high in California. 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, are experiencing a population boom.
Why Gas in Hawaii Is So Expensive
Hawaii has the second-most expensive gas in the U.S. Today, a gallon of regular gasoline averages $4.55 in Hawaii — not much of a drop from close to $4.84 per gallon in October 2023.
Gas is so expensive in Hawaii because it has to import most of its refined oil and the state’s remote location. The state actually has one of the country’s lowest gasoline taxes.
David Hackett, an energy industry consultant, also 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.
Washington and Nevada Gas Prices Among the Most Expensive in the U.S.
Early last year, the state of Washington had the most expensive gas in the United States. Today, a regular gallon of gasoline costs $4.07 a gallon on average in Washington — a significant drop from the roughly $5 per gallon in the summer of 2023.
The Olympic Pipeline, which serves Washington and Oregon, was under maintenance that year amid rising summer demand. That sent gas prices higher in both Pacific Northwest states.
The high gas prices stuck, due to the state’s new gas tax stemming from the Washington Climate Commitment Act. Washington now has the third-highest gasoline taxes in the country at $0.49 a gallon.
Nevada prices, now averaging $3.82 for a regular gallon, have declined from a high of close to $5 per gallon in 2023.
Cheapest Gas in the U.S. Is in Mississippi
The lowest average gas price in the U.S. is in Mississippi, averaging $2.68/gallon — more than $2 cheaper than California. One key factor is Mississippi’s low flat gas tax — which is set at 18.4 cents a gallon, regardless of the price of gas. That tax alone accounts for a nearly 50-cent-per-gallon gap compared to California.
Gas prices are similarly low in Louisiana, Oklahoma, and Texas. In fact, 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.
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 February 12, 2025, according to the AAA.
- California – $4.74
- Hawaii – $4.55
- Washington – $4.07
- Nevada – $3.82
- Oregon – $3.72
- Arizona – $3.39
- Pennsylvania – $3.35
- District of Columbia – $3.27
- Illinois – $3.26
- Idaho – $3.22
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