Fuel costs affect daily life across the US, shaping household budgets and business operations alike. Whether you’re managing a daily commute or running a commercial fleet, price differences from state to state have a real impact on what you spend.
To put the range in perspective: on June 16, 2022, California recorded the highest weekly gas price since 2018 at $6.43 per gallon. On the other end, Wisconsin hit a historic low of $1.29 per gallon on April 16, 2018.
Fast forward to 2026, and the landscape looks different. The national average has dropped to $2.81 per gallon as of February 2026, down from $3.10 for the full year 2025 and well below the 2022 peak. Oklahoma now holds the title of cheapest state at $2.34 per gallon, while California remains the most expensive at $4.50.
Knowing which states have the lowest gas prices helps travelers plan smarter road trips, lets drivers make better fueling decisions, and gives businesses a clearer picture of regional operating costs. Gas prices also signal broader economic trends, from crude oil supply shifts to refinery activity and seasonal demand patterns. In this post, we break down which states have the cheapest gas right now, why prices vary so much from state to state, and what to expect for the rest of 2026.
Source: Gas prices US | Weekly gas price averages: 2018-Feb 2026
Average Gas Price Trends Across U.S. States in 2025 and into 2026
Throughout 2025, US fuel costs trended downward as crude oil prices eased and fuel efficiency across the vehicle fleet improved. The yearly average for 2025 settled at $3.10 per gallon, with the highest point of the year recorded on April 3 at $3.27 per gallon and the lowest in December at $2.89 per gallon. The cheapest single-day average of the year was January 2 at $3.03 per gallon.
By January 2026, prices dropped further to $2.81 per gallon nationally, continuing the downward trend. As of February 2026, California holds the highest average at $4.50 per gallon, while Oklahoma has the lowest at $2.34 per gallon.
2026 U.S. Gas Prices by State: Current Averages and 5-Year Trend
The table below displays average regular gas prices nationwide as of February 2026, ranked from lowest to highest. Oklahoma has the lowest gas prices of any state at $2.34 per gallon, followed by Arkansas ($2.46), Mississippi ($2.47), Iowa ($2.56), and North Dakota ($2.56). California remains the most expensive state at $4.50 per gallon, with Hawaii ($4.40) and Washington ($4.06) also among the highest.
| Rank | State | Feb 2026 Avg Price | 2020-24 Avg Price |
|---|---|---|---|
| 1 | Oklahoma | $2.34 | ~$2.9 |
| 2 | Arkansas | $2.46 | ~$3.0 |
| 3 | Mississippi | $2.47 | ~$2.9 |
| 4 | Iowa | $2.56 | ~$3.1 |
| 5 | North Dakota | $2.56 | ~$3.1 |
| 6 | Kansas | $2.57 | ~$3.0 |
| 7 | Texas | $2.58 | ~$3.1 |
| 8 | Louisiana | $2.59 | ~$3.0 |
| 9 | Tennessee | $2.60 | ~$3.1 |
| 10 | Alabama | $2.61 | ~$3.0 |
| 11 | Missouri | $2.62 | ~$3.1 |
| 12 | Kentucky | $2.63 | ~$3.1 |
| 13 | South Carolina | $2.65 | ~$3.1 |
| 14 | Nebraska | $2.66 | ~$3.1 |
| 15 | Wisconsin | $2.67 | ~$3.0 |
| 16 | Indiana | $2.68 | ~$3.2 |
| 17 | North Carolina | $2.69 | ~$3.1 |
| 18 | Georgia | $2.70 | ~$3.1 |
| 19 | Virginia | $2.75 | ~$3.0 |
| 20 | Ohio | $2.76 | ~$3.2 |
| 21 | Wyoming | $2.77 | ~$3.2 |
| 22 | South Dakota | $2.78 | ~$3.1 |
| 23 | Utah | $2.79 | ~$3.2 |
| 24 | Minnesota | $2.80 | ~$3.0 |
| 25 | New Mexico | $2.81 | ~$3.0 |
| 26 | Florida | $2.82 | ~$3.0 |
| 27 | Colorado | $2.83 | ~$3.1 |
| 28 | Montana | $2.85 | ~$3.3 |
| 29 | West Virginia | $2.86 | ~$3.0 |
| 30 | Michigan | $2.88 | ~$3.3 |
| 31 | New Hampshire | $2.89 | ~$3.0 |
| 32 | Delaware | $2.90 | ~$3.2 |
| 33 | Maine | $2.91 | ~$3.5 |
| 34 | Vermont | $2.92 | ~$3.3 |
| 35 | Rhode Island | $2.93 | ~$3.4 |
| 36 | New Jersey | $2.94 | ~$3.1 |
| 37 | Maryland | $2.95 | ~$3.2 |
| 38 | Arizona | $2.97 | ~$3.3 |
| 39 | Idaho | $2.99 | ~$3.3 |
| 40 | New York | $3.00 | ~$3.4 |
| 41 | Connecticut | $3.02 | ~$3.2 |
| 42 | Massachusetts | $3.04 | ~$3.3 |
| 43 | Illinois | $3.06 | ~$3.5 |
| 44 | Pennsylvania | $3.08 | ~$3.4 |
| 45 | Alaska | $3.45 | ~$3.7 |
| 46 | Nevada | $3.46 | ~$3.6 |
| 47 | Oregon | $3.58 | ~$3.8 |
| 48 | Washington | $4.06 | ~$4.0 |
| 49 | Hawaii | $4.40 | ~$4.2 |
| 50 | California | $4.50 | ~$4.5 |
| – | District of Columbia†| $3.12 | ~$3.3 |
†District of Columbia included for reference; not a state. Data source: AAA Gas Prices, February 2026. Five-year average represents the estimated mean of each state’s annual average prices from 2020 through 2024, based on U.S. EIA data. Values rounded to the nearest cent.
Sources: LendingTree, ChooseEnergy, AAA Gas Prices, U.S. EIA.
Why Oklahoma Has the Lowest Gas Prices in 2026?
As of February 2026, Oklahoma holds the lowest gas prices in the US at $2.34 per gallon. Arkansas follows at $2.46, with Mississippi close behind at $2.47. Several factors explain why Oklahoma and its neighboring Southern states consistently hold the lowest prices in the country.
Factors Contributing to Low Prices
There are many factors why Oklahoma has the lowest gas prices as of Feb 2026. Here they are:
1. Proximity to Oil Refineries
Oklahoma sits at the heart of America’s oil infrastructure. The state is home to the Cushing oil hub, the largest crude oil storage facility in the US and a key pricing point for West Texas Intermediate (WTI) crude. This proximity to supply dramatically reduces transportation costs between refineries and gas stations. Neighboring states like Texas and Louisiana add further refining capacity to the region, keeping wholesale fuel prices consistently low across the area.
2. Lower State Fuel Taxes
Oklahoma’s state fuel tax sits at $0.19 per gallon for gasoline, one of the lowest in the country. Compare that to California’s $0.68 per gallon state tax, and the price difference at the pump starts to make sense immediately. Low-tax Southern and Plains states like Arkansas, Mississippi, and Tennessee consistently appear at the bottom of the price rankings for the same reason. Oklahoma funds its road infrastructure through a broader mix of revenue sources rather than leaning heavily on fuel taxes.
3. Economic and Infrastructure Considerations
Oklahoma and its neighboring low-price states have lower population density and less urban congestion than high-price states like California and New York. Less traffic means lower regional demand, which keeps prices competitive. The state also benefits from a well-developed pipeline network connecting it directly to Gulf Coast refineries, reducing the logistical costs that drive prices up in more isolated states.
Source: AAA Gas Prices, February 2026
Why Do Gas Prices Vary Between States?
Gas prices differ from state to state for several well-established reasons. Understanding these factors explains why the gap between Oklahoma at $2.34 and California at $4.50 exists and why it persists year after year.
1. Taxes
State fuel taxes are the single most controllable factor in pump prices. The national average state gas tax is approximately $0.32 per gallon, but individual states vary widely. California currently has the highest gasoline tax at $0.68 per gallon, while states like Oklahoma, Mississippi, and Missouri sit well below $0.20. These taxes fund roads, bridges, and public transit infrastructure, but they add directly to what drivers pay at the pump.
2. Supply and Demand
States with larger populations and higher vehicle registration numbers have greater fuel demand. When supply is tight, higher demand pushes prices up. California is a clear example: despite having multiple refineries, the state requires a unique fuel blend (California Reformulated Gasoline) that limits its ability to import fuel from other states during supply disruptions. When a single refinery goes offline, there is no easy substitute, and prices spike quickly.
3. Transportation Costs
Distance from refineries adds cost. States near Gulf Coast refining infrastructure, like Oklahoma, Texas, Louisiana, and Mississippi, pay less simply because fuel doesn’t have to travel as far. Hawaii and Alaska pay a premium partly because of the physical cost of getting fuel to those locations. Washington and Oregon face similar pressures due to limited pipeline connections to interior supply networks.
4. Environment Policies
States with stricter emissions regulations require specialized fuel blends that are more expensive to produce and distribute. California’s fuel standards are the most demanding in the country, which is one reason its prices are so consistently high. States with minimal environmental fuel requirements, concentrated in the South and Plains, benefit from lower production and distribution costs.
Source: 2023 State Gas Tax Rates
What Do Low Gas Prices Mean for Oklahoma and Southern State Residents?
Oklahoma benefits from reduced fuel costs, positively impacting both consumers and businesses. The following economic developments can occur when gas prices decrease:
1. More Spending Power for consumers
At $2.34 per gallon, Oklahoma drivers pay roughly $2.16 less per gallon than California drivers. For a vehicle with a 15-gallon tank, that’s over $32 saved per fill-up. Over a year of regular driving, those savings add up to real money that stays in local economies through spending on food, housing, and services.
2. Lower Operating Costs for Businesses
Delivery companies, logistics operators, and fleet-dependent businesses in low-price states carry a structural cost advantage over competitors in high-price states. Lower fuel costs translate directly into lower delivery costs, better margins, or more competitive pricing for customers.
3. Stronger Regional Competitiveness
Reduced fuel costs make it cheaper to move goods across Southern and Plains states, supporting manufacturing, agriculture, and distribution industries that depend on affordable transportation. This is one reason these states attract logistics-heavy businesses and distribution centers.
What to Expect for Gas Prices in 2026?
The outlook for 2026 is cautiously optimistic for drivers. The national average fell from $3.30 in 2024 to $3.10 across 2025, then dropped further to $2.81 in January 2026. The EIA projects overall US energy prices to continue declining through 2026 barring major supply disruptions.
That said, several factors could push prices back up seasonally. Spring and summer driving season typically increases demand and triggers price increases from March through July. Geopolitical events, refinery outages, and potential new tariff policies on Canadian and Mexican crude oil imports could also create short-term spikes. West Coast cities like Los Angeles and San Francisco are likely to remain well above $4.00 per gallon throughout the year due to their fuel blend requirements and tax structures.
The December 2025 national average of $2.89 per gallon represented the yearly low. Drivers in low-price states who lock in fleet fueling contracts or fuel delivery agreements during low-price periods stand to protect themselves from seasonal increases.
âš¡ Key Takeaways
- Mississippi leads in low fuel costs due to nearby refineries, reduced fuel taxes, and lower consumer demand.
- Residents and businesses benefit from regional fuel prices that support economic growth.
- States with strict environmental rules, high demand, heavy traffic, and limited supply will continue facing higher fuel prices.
- Overall U.S. energy prices may decline, but fluctuations depend on seasons, geopolitical issues, and refinery production.
- Fuel Logic provides detailed gasoline price information data, fuel-saving insights, and reliable fuel delivery services.
FAQs (Frequently Asked Questions)
How can I save money on gas while traveling?
To save money on gas while traveling, use real-time gas price tools to find the cheapest stations along your route. For fleet operators and businesses, scheduling direct fuel delivery removes retail price exposure entirely and often delivers fuel at below-pump rates.
What is the best way to keep track of gas prices?
The best way to keep track of gas prices is by checking the US EIA’s weekly fuel report, which provides the most reliable state-by-state averages. For fleet managers, Fuel Logic’s fuel delivery service locks in pricing directly, removing the need to monitor daily fluctuations.
How consistent are state rankings throughout 2026?
The relative ranking of states is fairly stable year to year. Oklahoma, Mississippi, Arkansas, Tennessee, and Louisiana consistently sit at the low end. California, Hawaii, and Washington consistently sit at the high end. Specific rankings shift weekly based on crude prices and local supply conditions, but the structural reasons for each state’s position change slowly.
Why does Oklahoma consistently have low gas prices?
Oklahoma benefits from hosting the Cushing oil storage hub, low state fuel taxes at $0.19 per gallon, strong pipeline infrastructure, and lower regional demand compared to high-population coastal states.
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