Hit the Road, Jack! But Make Sure You Can Afford to Come Back - Gas Prices Could Be Higher Than You Think

Since January, regular gas prices in the U.S. have climbed about 18%, from $3.11 to $3.66, and are forecast to stay around that level through the summer months. While prices are down from June of 2022, when they rose above $5.20 when adjusted for inflation – hitting a roughly 10-year high – they are still slightly higher on average than prior to the pandemic.

Current Gas Prices Across the U.S.

The current national average for gasoline is $3.61 per gallon, according to the national motor club AAA. However, drivers in some states face significantly higher prices. As of May 24, average prices for a gallon of regular gasoline range from a modest low of $3.06 in Mississippi to a high of $5.14 in California.

Regional Price Variations

Western and Pacific states face the most costly gas in the nation. The five states with the highest prices are:

- California: $5.14

- Hawaii: $4.79

- Washington: $4.57

- Oregon: $4.33

- Nevada: $4.32

These prices can vary within a state or even within a city due to factors such as local competition and access to pipelines and refineries. The high average price of gas in California is particularly notable because it has the most registered vehicles of any state.

Why is Gas So Expensive in California?

Several factors contribute to higher gas prices in California:

- Higher Environmental Standards: California has stricter environmental standards for fuel.

- Higher Gas Taxes: The state imposes higher taxes on gasoline compared to most other states.

- Limited Supply Sources: According to the U.S. Energy Information Administration, “California gasoline prices are generally higher and more variable than prices in other states because relatively few supply sources offer California’s unique blend of gasoline outside the state.”

Where to Find Cheaper Gas

For cheaper prices, head to the South and Great Plains, where motorists will find many of the states with the lowest average gas prices, led by:

- Mississippi: $3.06

- Arkansas: $3.09

- Oklahoma: $3.12

- Kansas: $3.13

- Louisiana: $3.16

Trends in Gas Prices

While the Southeast stands out for cheaper prices, many states that have seen the largest relative decreases in price over the past year are in the Southwest. Prices in Arizona have dropped more than anywhere else – by 15.9% – with Utah and New Mexico rounding out the three states with the most pronounced drops in the country from May 2023 to May 2024.

Overall Trends

In total, 18 states have seen prices drop in the last year, while 32 states and the District of Columbia have seen prices rise. Alaska has experienced the most significant hike, with prices increasing by more than 9%.

Conclusion

As you plan your travels this summer, keep in mind the varying gas prices across the country. Whether you are heading to a state with high or low fuel costs, being aware of these trends can help you budget and prepare for your road trips. Ensure you check local prices before filling up, as prices can fluctuate even within a short distance.

Additional Considerations

In addition to monitoring gas prices, consider other factors that can impact your fuel budget:

- Driving Habits: Adopting fuel-efficient driving practices can help reduce overall fuel consumption.

- Vehicle Maintenance: Regular maintenance, such as keeping tires properly inflated and changing air filters, can improve fuel efficiency.

- Route Planning: Plan your route to avoid heavy traffic and construction zones, which can lead to idling and increased fuel use.

- Fuel Reward Programs: Take advantage of fuel reward programs offered by gas stations and grocery stores to save on fuel costs.

By staying informed and prepared, you can make the most of your summer travels while managing fuel expenses effectively.