Yahoo Finance Top 25 States with Cheapest Gasoline Prices
In this article, we list and discuss the Top 25 States with Cheapest Gasoline Prices as of April 2024. If you would like to skip our detailed analysis of the US oil market, you can instead go to the Top 10 States with Cheapest Gasoline Prices.
Gasoline, a petrochemical product made through refining crude oil, is one of the most consumed fuels in the United States. The Energy Information Administration (EIA) reports that Americans consumed around 376 million gallons of gasoline daily as a transportation fuel in 2023. Due to such high demand for gasoline, it is also one of the major products refined in the US. oil refineries.
From the input of one 42-gallon barrel of crude oil, U.S. refineries produced 19.45 gallons or about 46% of finished motor gasoline in 2022. Overall, in the same year, the US refineries refined around 3.47 billion barrels of gasoline, making it the largest gasoline producer in the world. Since gasoline is made from crude oil, this also means that the United States has the highest crude oil production capacity; 17.77 million barrels of oil per day. (See also: 20 Biggest Oil Producers in the World). The country also accounts for 43.7% of the world's total oil consumption.
Unfortunately, despite such large levels of production, the US still does not satisfy the high demand for oil consumption in the country. Resultantly, the United States imports from 86 other countries; most prominently from the Middle East. In 2022, the US spent $204.72 billion on total oil imports, making it the country with the second-highest oil imports in the world. Moreover, in 2023, the US imported around 8.51 million barrels and exported around 10.15 million barrels of oil per day, a net of 1.64 million b/d.
So, the US is one of the leading oil importers as well as leading oil exporters in the world, while also domestically producing huge quantities of the same product — around 12.9 million barrels of crude oil per day. This is because, large oil-producing companies in the US, like Chevron Corp (NYSE:CVX), Exxon Mobil Corp (NYSE:XOM), and Phillips 66 (NYSE:PSX) export their petroleum products that mostly come from the Gulf coasts to all parts of the world, mostly to Canada and Mexico.
On the other hand, the United States imports heavy or high-viscosity crude oil from the Middle East as it’s cheaper compared to high-quality crudes that are low in viscosity. High-viscosity crude oil is denser, dirtier, and requires more advanced refineries to process and pump the oil through pipelines because of the high amount of sulfur, so it's cheaper. However, as reported via Reuters, the prices for heavy crude oil in the US and the Gulf Coast saw an increase in the past few weeks due to tightened supply. The increase in the prices of crude oil directly affects the prices of gasoline.
At the beginning of 2024, the gasoline price stood at $3.089 per gallon in the US, and 24 states had gas prices below $3. (Read: 24 States With Gas Prices Below $3). However, according to the most recent EIA report published on April 15, 2024, the national regular gasoline costs have now climbed up to $3.628 per gallon. The prices may further increase in the upcoming months as summer is a high-demand season.
The increase in gasoline prices will affect millions of Americans who use heavy cars for transport. In fact, there is an uptick in the adoption of electric vehicles (EVs) in the US, driven by the collective awareness of using cheaper, cleaner, and more sustainable energy than gasoline. The EV market in the US is projected to reach $391.03 billion by 2030, and companies like Chevron Corp (NYSE:CVX), Exxon Mobil Corp (NYSE:XOM), and Phillips 66 (NYSE:PSX) are going headfirst in the EV industry and capitalizing on the potential.
Chevron Corp (NYSE:CVX) invested $240 million in ChargePoint, one of the leading EV charging networks, in its Series H funding. Additionally, in July 2023, the company was also considering plans to start producing lithium batteries that are used in electric cars. Meanwhile, Exxon Mobil Corp (NYSE:XOM) makes products like lubricants, specialty greases, and e-motor fluids for electric vehicles to boost longevity between charges.
On the other hand, Phillips 66 (NYSE:PSX) is collaborating with FreeWire Technologies to expand the base of electric fueling stations in the United States. Moreover, Phillips 66 (NYSE:PSX) has launched the Branded EV Charging program in which the company’s branded customers will receive a discounted price on FreeWire chargers.
Top 25 States with Cheapest Gasoline Prices
Our Methodology
For our list of 25 States with the cheapest gasoline prices, we first listed the average gas prices across the 50 states and then shortlisted the ones with the cheapest prices as of writing this article. The list is in descending order, going from the highest price to the lowest price. For the data used within this article, we have referred to AAA and the Energy Information Administration.
By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Top 25 States with Cheapest Gasoline Prices
25. Wisconsin
Price of Gas per Gallon (April 16 2024): $3.41
Wisconsin, the 25th largest state in the US by area, houses over 5.89 million people and ranks 25th among the top 25 states with the cheapest gasoline prices in the US. As of writing this article, gasoline price in Wisconsin stands at $3.41 today, which is $0.218 below the national average value of $3.628 per gallon as reported by the EIA. Compared to the previous year, Wisconsin has seen a decrease of $0.13 in its gasoline prices.
24. Nebraska
Price of Gas per Gallon (April 16 2024): $3.41
On 5th February 2024, Nebraska’s gas prices stood at $2.820/gal — below $3. Two months later, in April, the prices have increased 18%, but the gas in the state still costs $0.218 less than the national average, making it the 24th cheapest state in the US for gasoline. In 2023, the price of gasoline in Nebraska averaged $3.533. In comparison, the gas price per gallon in Nebraska is $0.213 less than this year.
23. North Dakota
Price of Gas per Gallon (April 16 2024): $3.40
A landlocked midwestern US state, North Dakota’s gasoline prices have increased slightly from last month. In March, the price of gas per gallon in the state averaged $3.288. On the contrary, in 2023, gas prices in the state averaged $3.503 per gallon. So, while the state’s gas prices are $0.112 higher in April than in March, but still $0.103 less than in 2023, and $0.228 less than the national average.
22. Rhode Island
Price of Gas per Gallon (April 16 2024): $3.40
As of April 16th, Rhode Island has seen an increase of about 6 cents in the price of gas per gallon since last week. However, this cost is still $0.228 cheaper than the national average.
21. New Jersey
Price of Gas per Gallon (April 16 2024): $3.39
Home to over 9.28 million people, New Jersey is bordered by New York, Delaware, and Pennsylvania. According to the Energy Information Administration, New Jersey has two operating oil refineries, with a combined capacity of about 418,500 barrels per day. Naturally, this means that the state enjoys cheap gasoline prices. It is also the 13th-largest petroleum-consuming state in the US. In 2023, the average price of gasoline in New Jersey was $3.452, which has now dropped to $3.39, as of April 2024.
20. Massachusetts
Price of Gas per Gallon (April 16 2024): $3.39
Ranked 20th, the per gallon gasoline price in Massachusetts is $0.238 less than the national average as reported by the EIA. Compared to the previous year's price average of $3.396, Massachusetts gas price has managed to remain consistent and affordable this year as well.
19. South Dakota
Price of Gas per Gallon (April 16 2024): $3.39
The gasoline prices in South Dakota have slightly increased from the prices in March, which averaged $3.231. The current average in April 2024 is around $3.39, which is still $0.238 less than the national average, and $0.205 cheaper than the per gallon gasoline prices in its neighboring state, Montana.
18. Wyoming
Price of Gas per Gallon (April 16 2024): $3.38
18th on the list, Wyoming is among the top 20 states in the US with one of the cheapest gasoline prices. On 5th February 2024, Wyoming’s gas prices stood at $2.677/gal; the second-cheapest in the country. Two months later, in April, the prices have increased, but the gas in the state still costs $0.248 less than the national average. According to the EIA, Wyoming has about 2% of the total US crude oil reserves. It is also the eighth-largest crude oil producer in the US, which explains the cheap gasoline prices. As of April 2024, the prices of regular, mid-grade, and premium gasoline are $3.376, $3.629, and $3.912.
17. North Carolina
Price of Gas per Gallon (April 16 2024): $3.37
A year ago, in 2023, North Carolina’s gas prices were above $3.5. Today, in April 2024, there has been a significant drop in these prices, and per gallon gasoline prices in North Carolina have dropped from $3.545 in 2023 to $3.37.
16. New Hampshire
Price of Gas per Gallon (April 16 2024): $3.35
16th on the list of the top 25 states with the cheapest gasoline, New Hampshire is one of the smallest states in the country. The regular gasoline prices in the state stand at $3.35 as of writing this article, which is $0.278 cheaper than the national average of the US.
15. Missouri
Price of Gas per Gallon (April 16 2024): $3.35
Located in one of the most mineral-rich areas of the US, Missouri is a landlocked state in the midwestern US. The prices of regular, mid-grade, and premium gasoline in the state of Missouri are $3.348, $3.692, and $3.992 at the time of writing this article. The US Energy Information Administration reports that the annual oil output of Missouri increased in 2022 for the first time in nearly 10 years, rising to 67,000 barrels.
14. Iowa
Price of Gas per Gallon (April 16 2024): $3.32
Although the gasoline prices in Iowa have increased from March 2024, which was $3.192, at $3.32, Iowa’s average price of gasoline is $0.308 less than the national average of the US.
13. Kentucky
Price of Gas per Gallon (April 16 2024): $3.32
The prices of regular gas, mid-grade gas, premium gas, and Diesel in Kentucky, as of writing this article are $3.320, $3.780, $4.185, and $3.844 respectively. According to the EIA, the state is responsible for 0.1% of US crude oil reserves and production.
12. Minnesota
Price of Gas per Gallon (April 16 2024): $3.31
Ranked 12th, Minnesota's average per gallon gas price stands at $3.31, which is $0.318 cheaper than the national average of the US. It’s also $0.288 cheaper than 2023's average price.
11. Tennessee
Price of Gas per Gallon (April 16 2024): $3.28
In Tennessee, gas prices have increased slightly as compared to March 2024, going from $3.091 to $3.28. Still, it’s $0.348 cheaper than the state average, which positions it as the 11th cheapest state for gasoline in the US.
Click to continue reading and see the Top 10 States with Cheapest Gasoline Prices.
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Disclosure: None. Top 25 States with Cheapest Gasoline Prices is originally published on Insider Monkey.
