Gas Prices by State 2026

Oklahoma's $3.272 per gallon average, the lowest in the country, reflects both low state fuel taxes and direct pipeline access to Gulf Coast refineries. Oklahoma's state gasoline tax is 19 cents per gallon, compared to over 68 cents in California. The state also sits near the Cushing, Oklahoma crude oil hub, the largest in North America, which reduces transportation costs between production and refining.

Kansas ($3.365), Iowa ($3.482), and Nebraska ($3.482) follow for similar reasons: low state taxes, flat terrain that keeps pipeline infrastructure costs down, and no special blend requirements. The Great Plains corridor consistently records the lowest gas prices in the country because it is geographically equidistant from Gulf Coast, Midwest, and Rocky Mountain refining capacity.

State and local fuel taxes vary from 8.95 cents per gallon in Alaska to over 68 cents in California when all fees are included. The federal excise tax adds 18.4 cents per gallon universally. A state with a 60-cent higher tax burden will show roughly 60 cents higher pump prices, all else equal. Tax differences alone explain most of the variation between cheap and expensive gas states.

California, Pennsylvania, Illinois, and Washington have the highest effective fuel tax burdens. Mississippi, Missouri, and Oklahoma have the lowest. States without income taxes sometimes keep fuel taxes moderate to avoid stacking burdens, but the correlation is not consistent: Alaska has no income tax and the lowest gas tax, while New Hampshire has no income tax and moderate gas prices. See gas tax by state for the full tax breakdown.