The 5 States With the Lowest Gas Prices

If you're keeping a close eye on your household budget these days, you've undoubtedly made note of gasoline prices in your area. As of July 26, 2024, the average price of regular unleaded gas nationwide is $3.519. In some states, that average is much higher, and in others, it is lower.

Here, I'll let you know which five states have the lowest average gas prices, why prices vary so dramatically by region, and ways you can save on every gallon of gasoline you buy.

Five states with the lowest gas prices

Here's a table with the lowest average prices and how far they are below the national average.

Why gasoline prices are so much cheaper in some regions

When you compare the price of gas in these Southern states to states with much higher average gas prices, like Hawaii ($4.680), California ($4.652), and Washington ($4.248), it's easy to wonder why the discrepancy. How is it possible that gas prices can vary by so much?

According to the U.S. Energy Information Administration, four important factors determine how much you'll pay for gas, depending on where you reside.

1. Distance from the gas supply: The farther gasoline must be transported from refineries, ports, pipelines, and blending terminals, the more it costs once it arrives at the point of sale.
2. Supply disruptions: Any time something disrupts the gasoline supply, bidding for gasoline drives the cost up. For example, if a hurricane hits the U.S., causing a refinery shutdown or unexpected refinery maintenance, you can expect to see gas prices rise.
3. Retail competition -- or lack of retail competition: You may have noticed higher gas prices at stations in remote areas. When a gas station has very little local competition, it can pretty much set any price it would like. Even in areas crowded with gas stations, those with the lowest operating costs can afford to charge less per gallon.
4. Environmental programs: Environmental programs vary by state, with some states enforcing stricter standards to protect their citizens and the environment. It's typically states rated among the "least environmentally friendly" that offer the lowest gasoline prices.

Tips to save on gasoline, no matter where you live

Any time you can protect your personal finances by saving a few dollars, it's a good thing. Whether you're paying in cash or pulling out a credit card that rewards you for gas and grocery purchases, here are a few handy tips for saving money at the gas pump.

Sign up for rewards programs

Signing up for rewards programs through gas stations and, often, grocery stores can save money per gallon. For example, those who join the Circle K Inner Circle rewards program receive $0.25 off each gallon for their first five fill-ups. After that, they get $0.03 off per gallon, and once they spend $500 on any combination of fuel, food, and beverages, they're upgraded to a premium membership and enjoy $0.05 off each gallon.

Take advantage of a warehouse membership

If you're a member of Costco or Sam's Club, don't forget about the gas pumps available outside your local store. Filling up there can save real money over time. For example, the average cost of a gallon of gas at my local Circle K is currently $3.84. At Sam's Club, it's $3.42 per gallon, and I can fill up my tank at Costco for $3.41 per gallon.

Follow the apps

Either download a low-cost gas-finding app or check one of these sites online for a list of the cheapest gas in your area:

• GasBuddy
• Waze
• Gas Guru

You can be sure that gas prices will rise and fall depending on what's happening in the world. Fortunately, you have the tools at your fingertips to locate the lowest price wherever you may be.