US-Iran war threatens energy supplies, sending domestic gas prices soaring
Gas prices have soared after a joint operation between the United States and Israel disrupted the supply chain for crude oil, the main raw material for gasoline.
- Gas prices vary by state, depending on factors such as local taxes, distance from the source, and environmental programs.
- In addition to state taxes, a federal tax of 18.4 cents per gallon has been applied to all gas purchases since 1993.
- California has the highest state gas tax at 71 cents per gallon.
With gas prices averaging more than $4 per gallon, motorists are wondering what causes the differences in gas station prices from state to state.
These questions arise after the national average gasoline price rose to $4.08 per gallon on Thursday, April 2, according to the AAA Auto Club. This figure is up from the national average price of $3.98 a week ago on March 26th and the average price of $3.00 on March 5th.
The state with the highest gas prices on April 2 was California, where drivers paid an average of $5.89 per gallon, up from $4.65 a month earlier on March 5. The state with the lowest gas prices on April 2 was Oklahoma, where drivers paid an average of $3.27 per gallon, still up from Oklahoma’s average gas price of $2.47 a month earlier on March 5.
The USA TODAY Cars team investigated what causes gas price fluctuations in states and which states have the highest gas taxes.
What causes the variation in gas prices across states?
According to the U.S. Energy Information Administration, regional differences in gas prices can be explained by several factors.
The agency cites the following reasons for regional differences in gas prices.
- Differences between state and local gas taxes
- Distance from source
- interruption of supply
- Retail competition and operating costs
- environmental program
“The more gasoline has to be transported to the point of sale, the higher the transportation costs, so the retail price of gasoline tends to be higher,” the agency said.
“Slowing or halting gasoline production could result in increased bidding for available gasoline supplies,” the agency added. “Gas station prices are often highest in locations with the fewest gas stations.”
The agency added: “Some regions of the country require the use of special reformulated gasoline that contains additives to reduce the production of carbon monoxide, smog, and toxic air pollutants from gasoline evaporation and combustion.”
Which state has the highest gas tax?
The federal government has collected taxes on all gasoline purchases made at U.S. gas stations since the 1930s. The current tax rate of 18.4 cents per gallon was established by law passed by Congress in 1993. Transportation funding advocates lament that Congress has not acted to raise gas taxes in more than 30 years.
In addition to the federal gas tax paid by all drivers, each state imposes its own local gas tax.
Here are the states with the highest gas taxes and current average gas prices.
1. California
- gasoline tax: 71 cents per gallon
- Average gasoline price on April 2nd: $5.89
2. Illinois
- gasoline tax: 66 cents per gallon
- Average gasoline price on April 2nd: $4.27
3. Washington
- gasoline tax: 59 cents per gallon
- Average gasoline price on April 2nd: $5.37
4. Pennsylvania
- gasoline tax: 59 cents per gallon
- Average gasoline price on April 2nd: $4.08
5. Indiana
- gasoline tax: 55 cents per gallon
- Average gasoline price on April 2nd: $3.95
6.Michigan
- gasoline tax: 48 cents per gallon
- Average gasoline price on April 2nd: $3.89
7. Maryland
- gasoline tax: 46 cents per gallon
- Average gasoline price on April 2nd: $4.06
8. New Jersey
- gasoline tax: 45 cents per gallon
- Average gasoline price on April 2nd: $4.05
9. Virginia
- gasoline tax: 42 cents per gallon
- Average gasoline price on April 2nd: $4.01
10. Rhode Island
- gasoline tax: 41 cents per gallon
- Average gasoline price on April 2nd: $3.91
11. North Carolina
- gasoline tax: 41 cents per gallon
- Average gasoline price on April 2nd: $3.91
12. Oregon
- gasoline tax: 40 cents per gallon
- Average gasoline price on April 2nd: $4.97
13. Florida
- gasoline tax: 39 cents per gallon
- Average gasoline price on April 2nd: $4.23
14. Utah
- gasoline tax: 39 cents per gallon
- Average gasoline price on April 2nd: $4.19
15. Ohio
- gasoline tax: 39 cents per gallon
- Average gasoline price on April 2nd: $3.76
16. West Virginia
- gasoline tax: 36 cents per gallon
- Average gasoline price on April 2nd: $3.91
17. Washington DC
- gasoline tax: 35 cents per gallon
- Average gasoline price on April 2nd: $4.20
18. Georgia
- gasoline tax: 34 cents per gallon
- Average gasoline price on April 2nd: $3.70
19. Montana
- gasoline tax: 34 cents per gallon
- Average gasoline price on April 2nd: $3.75
20. Idaho
- gasoline tax: 33 cents per gallon
- Average gasoline price on April 2nd: $4.27
21. Wisconsin
- gasoline tax: 33 cents per gallon
- Average gasoline price on April 2nd: $3.79
22. Nebraska
- gasoline tax: 33 cents per gallon
- Average gasoline price on April 2nd: $3.43
23. Minnesota
- gasoline tax: 32 cents per gallon
- Average gasoline price on April 2nd: $3.55
24. Maine
- gasoline tax: 31 cents per gallon
- Average gasoline price on April 2nd: $3.91
25. Vermont
- gasoline tax: 31 cents per gallon
- Average gasoline price on April 2nd: $3.99
26. Alabama
- gasoline tax: 31 cents per gallon
- Average gasoline price on April 2nd: $3.80
27. Iowa
- gasoline tax: 30 cents per gallon
- Average gasoline price on April 2nd: $3.48
28. South Dakota
- gasoline tax: 30 cents per gallon
- Average gasoline price on April 2nd: $3.52
29. Missouri
- gasoline tax: 30 cents per gallon
- Average gasoline price on April 2nd: $3.49
30. Colorado
- gasoline tax: 29 cents per gallon
- Average gasoline price on April 2nd: $3.83
31. South Carolina
- gasoline tax: 59 cents per gallon
- Average gasoline price on April 2nd: $3.83
32. Massachusetts
- gasoline tax: 27 cents per gallon
- Average gasoline price on April 2nd: $3.86
33. Tennessee
- gasoline tax: 27 cents per gallon
- Average gasoline price on April 2nd: $3.84
34. Kentucky
- gasoline tax: 26 cents per gallon
- Average gasoline price on April 2nd: $3.90
35. Kansas
- gasoline tax: 25 cents per gallon
- Average gasoline price on April 2nd: $3.33
36. Arkansas
- gasoline tax: 25 cents per gallon
- Average gasoline price on April 2nd: $3.53
37.Connecticut
- gasoline tax: 25 cents per gallon
- Average gasoline price on April 2nd: $4.02
38. New York
- gasoline tax: 25 cents per gallon
- Average gasoline price on April 2nd: $4.01
39. Wyoming
- gasoline tax: 24 cents per gallon
- Average gasoline price on April 2nd: $3.84
40. New Hampshire
- gasoline tax: 24 cents per gallon
- Average gasoline price on April 2nd: $3.87
41. Nevada
- gasoline tax: 24 cents per gallon
- Average gasoline price on April 2nd: $4.94
42. North Dakota
- gasoline tax: 23 cents per gallon
- Average gasoline price on April 2nd: $3.43
43. Delaware
- gasoline tax: 23 cents per gallon
- Average gasoline price on April 2nd: $3.88
44. Mississippi
- gasoline tax: 21 cents per gallon
- Average gasoline price on April 2nd: $3.71
45. Louisiana
- gasoline tax: 21 cents per gallon
- Average gasoline price on April 2nd: $3.75
46. Oklahoma
- gasoline tax: 20 cents per gallon
- Average gasoline price on April 2nd: $3.27
47. Texas
- gasoline tax: 20 cents per gallon
- Average gasoline price on April 2nd: $3.80
48. Arizona
- gasoline tax: 18 cents per gallon
- Average gasoline price on April 2nd: $4.69
49. New Mexico
- gasoline tax: 19 cents per gallon
- Average gasoline price on April 2nd: $3.83
50. Hawaii
- gasoline tax: 19 cents per gallon
- Average gasoline price on April 2nd: $5.50
51. Alaska
- gasoline tax: 9 cents per gallon
- Average gasoline price on April 2nd: $4.60
