In this article, we are going to discuss the 5 states with the cheapest gas prices in the US. If you want to check out our detailed analysis of the global oil and gas market, the reason why gas is so cheap in the U.S., the total refining capacity of the United States, and the transition to biorefineries, head to 20 States With the Cheapest Gas Prices in the US.
5. Louisiana
Price of Gas per Gallon: $2.811
Louisiana ranks among the Top 10 Oil Producing States in the U.S. and the Pelican State’s 15 oil refineries account for nearly one-sixth of the nation’s total refining capacity, capable of processing about 2.9 million barrels of crude oil per day. Because of such high refining capacity within the state itself, gas doesn’t have to travel a lot and so it has low transportation costs.
4. Georgia
Price of Gas per Gallon: $2.786
There are several reasons behind the low gas prices in Georgia, including slack demand, cheaper oil prices, and Governor Kemp’s suspension of the state’s gas tax. Gov. Kemp first ordered the suspension back in September, declaring that high prices and uncertain economic conditions were causing a state of emergency in the Peach State, and has also extended the suspension twice since then. However, the suspension of the state gas tax is set to expire just before midnight on Wednesday, November 29th.
3. Oklahoma
Price of Gas per Gallon: $2.782
Oklahoma is one of the Top Oil and Gas Producing States in the country and the Sooner State produced about 152 million barrels of crude oil in 2022, accounting for about 3.5% of the nation’s total annual crude oil production. Oklahoma’s 20-cent per gallon gas tax is also among the lowest in the country, however, the Oklahoma Department of Transportation is conducting the Fair Miles Oklahoma pilot project as a pay-per-mile alternative to the existing gas tax that is added on to each gallon of fuel.
2. Mississippi
Price of Gas per Gallon: $2.761
Gas prices in Mississippi are often cheaper than the national average and neighboring states due to lower state taxes on fuel per gallon. The Magnolia State levies a tax of only 18 cents a gallon on all gasoline, which is among the lowest in the country.
It was announced in July this year that Denbury Inc. – the largest oil producer in Mississippi – has been acquired by ExxonMobil Corp for $4.9 billion.
1. Texas
Price of Gas per Gallon: $2.72
With 1.8 billion barrels of crude produced in 2022, Texas is, by a margin, the Largest Oil Producing State in America. The state also accounts for 29% of the nation’s total refining capacity, with Texas’ 27 oil refineries processing about 5.1 million barrels a day and employing a workforce of around 100,000. The Lone Star State also has a low gas tax of 20-cents per gallon, which helps keep gasoline affordable.
Texas is the U.S. State with the Cheapest Gas.
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