Why Is Gas So Much More Expensive in Some States Than Others?
The New York Times • • business
Key Points:
- Gasoline prices in the U.S. have increased by about 50% since the war in Iran began, with the national average at $4.54 per gallon, but prices vary significantly by state and locality.
- California has the highest average gas price at $6.16 per gallon, while Oklahoma's average is much lower at $3.96, reflecting regional disparities.
- Over half of the gasoline price is linked to crude oil prices, which have surged more than 50% since U.S. and Israeli attacks on Iran started on February 28.
- Variations in gas prices across states and cities are influenced by factors such as refinery locations, transportation logistics, state taxes, regulations, and local competition among gas stations.
- Most U.S. gasoline is refined in Louisiana and Texas, and transporting fuel to distant states, especially those far from the Gulf Coast, adds to the cost due to pipeline and trucking expenses.
