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Why US Gas Prices Vary So Dramatically by Region

New York Times Top Stories •
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Gas prices vary dramatically across the US — Mono County, California sees prices as high as $7.04 per gallon while parts of Oklahoma hover around $3.98. Several factors drive these disparities: refinery locations, shipping logistics, state taxes and regulations, and local competition. California faces particularly steep prices due to refinery closures forcing fuel imports and the state's unique low-emission gasoline blend.

The price surge hits low-income Americans hardest. According to Federal Reserve Bank of New York analysis, higher-income drivers continue purchasing similar amounts despite higher costs. Meanwhile, poorer households are spending more while buying less fuel — cutting back on driving, car-pooling or using public transit. One rideshare driver in Charleston, South Carolina told The Times her fill-up costs jumped from $25 to over $40.

Getting gasoline to pumps involves a month-long journey: tankers transport crude from the Strait of Hormuz to refineries, then fuel moves via train to depots and finally tanker trucks to stations. With few tankers passing through the Iranian blockade, supply disruptions could persist for months even if the waterway fully reopens.