Gas prices vary by as much as $2.00 per gallon across US states right now. If you're moving, planning a road trip, or just curious where the cheapest fuel is, here's what the data actually shows.
The cheapest states right now
According to the latest weekly EIA data, the states consistently at the bottom of the price list are Mississippi, Oklahoma, Arkansas, Alabama, and Texas. These states share a few things in common.
They all have relatively low state gas taxes. Mississippi and Oklahoma both charge less than 25 cents per gallon in state taxes, compared to California's 70 cents. They're also all close to Gulf Coast refinery infrastructure, which cuts transportation costs. And they tend to have a lower overall cost of living and competitive retail markets.
Why the South is generally cheap
The Gulf Coast of Texas and Louisiana is the refinery hub of the United States. States that sit close to that infrastructure, physically connected by pipeline, get fuel cheaper than states on the West Coast or in New England that have to ship fuel long distances.
Mississippi sits at the end of a pipeline network that runs right through the heart of cheap refinery territory. Low taxes, combined with low transportation costs, make it one of the consistently cheapest states in the country, going back decades. Historical FuelWatch data confirms this: Mississippi has almost always ranked near the bottom of state rankings.
The most expensive states
On the other hand, California, Hawaii, Washington, Oregon, and Alaska are the states where drivers pay the most. Hawaii is expensive for obvious reasons; everything has to be shipped there. Alaska has very limited pipeline infrastructure, and low population density makes retail operations expensive. The Pacific Coast states, California, Washington, and Oregon, all have high state taxes and stricter environmental regulations.
What this means for fleet operators
If you're managing a fleet that operates across multiple states, the price differences are significant. A truck that fills up in Mississippi vs California on the same day might pay $1.50 to $2.00 more per gallon in California. For a vehicle that holds 100 gallons, that's $150 to $200 per fill. Multiply that across a fleet and routes, and optimizing where you fuel up can make a real difference.
FuelWatch shows current prices for all 50 states and lets you set alerts when prices in specific states cross a threshold. If you're watching diesel prices in states where your fleet operates, the alert feature was built for exactly that use case.