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Gas Prices Vary by State: Costs Linked to Refineries, Taxes, Regulations

New York Times Business •
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Gasoline prices in the U.S. differ by state due to refinery locations, taxes, and regulations. The national average hit $4.54, but California averaged $6.16 while Oklahoma averaged $3.96, with county-to-county and city-to-city variations. Over half of gas prices tie to oil costs; since the Iran attack on Feb 28, Brent crude rose over 50%.

Refineries in Louisiana and Texas supply much of the country, but shipping to distant states can be expensive. The Jones Act, requiring U.S.-built and crewed ships for domestic cargo, adds costs, prompting some states to import fuel from Africa or Asia. State taxes vary widely: Alaska’s average tax was 9 cents, California’s nearly 71 cents, the highest.

Environmental regulations in Democratic-led states like California also drive up costs. Even Alaska, with low taxes, had gas costing $5.19, 64 cents more than liberal New York. Densely populated areas with many gas stations tend to have lower prices.

California’s high prices stem from refinery closures, reduced supply, and a unique fuel blend to combat air pollution. These factors create stark regional differences in fuel costs.