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How does your state compare to the average?
Key points
- Hawaii, California, and Alaska are the most expensive states to buy regular gas.
- Texas, Arkansas, and South Carolina are the least expensive states to buy regular gas.
- Higher gas prices have caused almost two-thirds of Americans to change their driving habits.
The average price of gas is finally starting to fall. Having peaked at over $5 in mid-June, it slipped below $4 in August, according to AAA. At time of writing, the average price of gas was $3.99. That’s almost a dollar higher than it was last August, but the drop still offers us some respite against spiraling living costs.
Gas prices vary dramatically depending on where you live, with Texans paying $1.897 less per gallon than people who live in Hawaii. Given that the average American uses over 560 gallons per year, people in Hawaii could pay over over $1,000 more than Texans in gas costs in a year.
Where are gas prices the highest?
Hawaii, California, and Alaska top the charts in terms of gas prices. A gallon of regular gas costs $5.390 in Hawaii, while mid-grade gas costs $5.621 and premium costs $5.861. Hawaii and California are also the most expensive places to buy diesel, which costs $6.099 and $6.255 respectively per gallon.
The 10 most expensive states to buy gas
| State | Cost of regular gas, per gallon | |
|---|---|---|
| 1. Hawaii | $5.390 | |
| 2. California | $5.384 | |
| 3. Alaska | $4.948 | |
| 4. Nevada | $4.941 | |
| 5. Oregon | $4.881 | |
| 6. Washington | $4.814 | |
| 7. Idaho | $4.736 | |
| 8. Utah | $4.666 | |
| 9. New York | $4.380 | |
| 10. Vermont | $4.364 |
Data source: AAA
Where are the least expensive gas prices?
Texas is the lowest cost state to buy gas, with one gallon of regular costing less than $3.50. Arkansas and South Carolina aren’t far behind. Regular gas costs are less than $3.60 per gallon in all the lowest ten states for gas prices. Premium gas costs about 20% more in most of those states.
Looking at diesel prices, Oklahoma, Texas, and Kansas are the three lowest cost states, with a gallon coming in at $4.567, $4.574, and $4.670 respectively. For most of the country, diesel prices are around 20% to 30% more expensive than regular gas. However, in Nevada and Utah, it only costs 5% and 7% more to buy diesel than regular.
The 10 least expensive states to buy gas
| State | Cost of regular gas, per gallon | |
|---|---|---|
| 1. Texas | $3.493 | |
| 2. Arkansas | $3.532 | |
| 3. South Carolina | $3.538 | |
| 4. Tennessee | $3.550 | |
| 5. Oklahoma | $3.557 | |
| 6. Georgia | $3.558 | |
| 7. Mississippi | $3.578 | |
| 8. Alabama | $3.586 | |
| 9. Kansas | $3.587 | |
| 10. Kentucky | $3.594 |
Data source: AAA
Almost two thirds of Americans have changed their habits
The AAA says high gas prices have caused 64% of adults to change their driving habits in the past few months. Its latest survey shows people are cutting their gas consumption in the following ways:
- 88% are driving less
- 74% are combining errands
- 56% are reducing shopping or dining out
- 30% are delaying major purchases
Other Americans have opted to postpone their vacations and some say they’re putting less money into their savings accounts. Some are carpooling or using public transport, and others say they’ve switched to a more fuel-efficient vehicle. It may also be worth looking into gas credit cards so you can earn rewards on gas purchases.
Gas prices are still significantly higher than they were a year ago, whatever state you live in. Any reductions you can make in your spending will have a positive impact on your bank balance.
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