The daily life in the US experiences critical effects of fuel costs, which modify domestic spending plans and affect the running of organizational operations. Commute-related activities as well as company transportation management will both experience noticeable effects from varying fuel prices. On June 16th, 2022, California stood as the state with the most expensive weekly gasoline price since 2018 as residents were forced to pay $6.43 per gallon.
On 16th April, Wisconsin was the state with the lowest gas prices at $1.29 per gallon since 2018. But in 2025, which state will have the cheapest gas price? Knowing this information can help travelers and drivers save money. Businesses can also use this info to manage fuel costs and plan budgets. Not to mention, gas prices can hint at bigger economic trends, which we’ll share with you in this post. We’ll also talk about which state has the cheapest gas price, how this can impact its residents, and why there’s variation in gas prices by state!
Source: Gas prices US | Weekly gas price averages: 2018-2025
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.
Average Gas Price Trends Across U.S. States in 2025
During 2025, the United States experienced decreasing fuel costs because oil expenses lowered and vehicles became more fuel-efficient. The national fuel price stands at $3.27 per gallon on April 3rd, 2025, making it the highest price point this year. But last week, it registered $3.13, while the yearly 2025 average stands at $3.10 per gallon.
You can also check the list of gas prices by year in the US from 1993-2025. The cheapest gas was on January 2 at $3.03. California had the highest gas prices among all states, averaging $4.94 on April 4, while Mississippi had the lowest at $2.76 on the same date.
2025 Gas Prices by State Compared to 5-Year Trends (2025 vs. 5-Year Average)
The table below displays the average regular gas prices nationwide for 2025, ranked from lowest to highest. Mississippi has the lowest gas prices of any state at $2.72 per gallon, followed by Oklahoma ($2.75), Tennessee ($2.78), Louisiana ($2.80), and Arkansas ($2.82).
| Rank | State | 2025 Avg Price | 2020–24 Avg Price (approx) |
|---|---|---|---|
| 1 | Mississippi | $2.71 | ~$2.9 (lowest) |
| 2 | Louisiana | $2.79 | ~$3.0 |
| 3 | Texas | $2.80 | ~$3.1 |
| 4 | Alabama | $2.81 | ~$3.0 |
| 5 | Oklahoma | $2.82 | ~$3.0 |
| 5 | Tennessee | $2.82 | ~$3.1 |
| 7 | Arkansas | $2.83 | ~$3.0 |
| 8 | Missouri | $2.85 | ~$3.1 |
| 9 | South Carolina | $2.86 | ~$3.1 |
| 9 | North Carolina | $2.86 | ~$3.1 |
| 9 | Kentucky | $2.86 | ~$3.1 |
| 12 | Kansas | $2.89 | ~$3.0 |
| 13 | Georgia | $2.91 | ~$3.1 |
| 13 | New Hampshire | $2.91 | ~$3.0 |
| 13 | North Dakota | $2.92 | ~$3.1 |
| 16 | Nebraska | $2.93 | ~$3.1 |
| 16 | Wisconsin | $2.93 | ~$3.0 |
| 18 | New Mexico | $2.94 | ~$3.0 |
| 19 | Ohio | $3.01 | ~$3.2 |
| 19 | Rhode Island | $3.01 | ~$3.4 |
| 19 | Florida | $3.01 | ~$3.0 |
| 22 | South Dakota | $3.02 | ~$3.1 |
| 22 | Massachusetts | $3.03 | ~$3.3 |
| 24 | Wisconsin | $3.04 | ~$3.0 |
| 25 | Maine | $3.06 | ~$3.5 |
| 25 | Iowa | $3.06 | ~$3.1 |
| 28 | Virginia | $3.08 | ~$3.0 |
| 28 | New Jersey | $3.09 | ~$3.1 |
| 28 | Vermont | $3.09 | ~$3.3 |
| 31 | West Virginia | $3.10 | ~$3.0 |
| 31 | Minnesota | $3.10 | ~$3.0 |
| 33 | Colorado | $3.11 | ~$3.1 |
| 33 | Connecticut | $3.12 | ~$3.2 |
| 35 | Indiana | $3.13 | ~$3.2 |
| 36 | Delaware | $3.14 | ~$3.2 |
| 36 | Florida | $3.14 | ~$3.0 |
| 38 | Wyoming | $3.16 | ~$3.2 |
| 38 | New York | $3.16 | ~$3.4 |
| 40 | Maryland | $3.18 | ~$3.2 |
| 41 | District of Col.† | $3.19 | ~$3.3 |
| 41 | Montana | $3.23 | ~$3.3 |
| 42 | Michigan | $3.27 | ~$3.3 |
| 43 | Arizona | $3.29 | ~$3.3 |
| 44 | Utah | $3.32 | ~$3.2 |
| 45 | Pennsylvania | $3.33 | ~$3.4 |
| 46 | Idaho | $3.37 | ~$3.3 |
| 47 | Illinois | $3.44 | ~$3.5 |
| 48 | Alaska | $3.68 | ~$3.7 |
| 49 | Nevada | $3.82 | ~$3.6 |
| 50 | Oregon | $4.02 | ~$3.8 |
| 51 | Washington | $4.41 | ~$4.0 |
| 52 | Hawaii | $4.46 | ~$4.2 |
| 53 | California | $4.65 | ~$4.5–4.7 (highest) |
† District of Columbia (D.C.) included for reference; not a state.
Data: 2025 prices are statewide averages for regular gasoline (approx. mid-2025). Five-year average is the mean of each state’s annual average prices from 2020 through 2024 (estimated from U.S. EIA data; 2022 was the peak price year nationally). Values are rounded to the nearest cent.
Sources: LendingTree, ChooseEnergy, AAA Gas Prices, U.S. EIA.
Why Mississippi Has the Lowest Gas Prices in 2025?
Mississippi currently boasts the lowest gasoline price in all US states, standing at an average of $2.76 per gallon on April 4. A week ago, the price was at $2.65 per gallon. In June 2025, Mississippi had the lowest gas prices in the United States, with an average of $2.72 per gallon. Several other states, including Tennessee, Oklahoma, and Louisiana, also had relatively low prices, with averages between $2.69 and $2.71.
Factors Contributing to Low Prices
There are many factors why Mississippi has the lowest gas prices in 2025. Here they are:
1. Proximity to Oil Refineries
Mississippi operates three refineries through which the state processes 394,000 barrels of crude oil/per day, which represents 2% of the US domestic refining ability. Another reason the state enjoys affordable gas prices is that its location is near Louisiana and Texas refineries.
This reduced transportation distance between oil sources and gas stations supports low gasoline prices. Besides, Mississippi maintains the 11th-biggest oil refinery in the United States, together with a substantial natural gas facility followed by an LNG terminal situated on its Gulf Coast.
2. Lower State Fuel Taxes
The state maintains competitive fuel tax rates across the nation, with $0.18 per gallon being applied to both gasoline and diesel fuel. Among US states, Mississippi sits at the second place for the lowest fuel taxes. Compared to these statistics, states like California charge as much as $0.68 per gallon.
Mississippi maintains low fuel taxes since it aims to provide consumers with more reasonable fuel prices. It avoids implementing surcharges for environment or infrastructure, commonly imposed by other states. Road and transportation projects in Mississippi receive funds from sales taxes and federal allocations instead of depending on fuel taxes.
3. Economic and Infrastructure Considerations
Mississippi is among the five states in the US with the lowest gas prices. The gas prices stay low partly because people there don’t use as much fuel. The state has fewer big cities and less traffic than places like California or New York. Thus, there’s less driving overall, and roads are less crowded.
Though Mississippi does have industries that use energy, transportation only makes up about a third of its energy use. This is less than in states where people drive a lot or rely heavily on public transit.
The state made progress in four different sectors, including bridges, dams, rail, and solid waste management, from 2020 to 2024, thus driving down gasoline costs. When infrastructure is strong, the expenses related to fuel operations decrease, which enables consumers to pay less at the pump.
Source: AAA Fuel Prices
Why Do Gas Prices Vary Between States?
Diesel fuel prices by state can differ due to several reasons. Knowing these factors helps explain why some states have higher gas prices at the pump than others:
1. Taxes
State-tax gains have substantial effects on gas costs. Among all state-imposed taxes, fuel prices include two main ones, which are excise taxes and sales taxes. At present, the average state gas revenue tax stands at 32 cents per gallon, yet individual tax amounts between states can differ. California leads the nation with the highest gasoline tax of 77.9 cents per gallon, existing since July 1, 2023.
This tax serves the upkeep and betterment of roads, bridges, and the public transportation infrastructure. The state fuel tax rates significantly differ between Mississippi’s 18.4-cent rate, which is much lower than other US states. As we mentioned above, this is because the government funds the Mississippi infrastructure.
2. Supply and Demand
Gas prices are also influenced by local demand. States with denser populations and more vehicle registration numbers need to pay higher gas prices to satisfy increased fuel market competition. For example, the numerous registered vehicles across California generate substantial fuel consumption that drives gas costs up when supply remains restricted.
Furthermore, if you reside in a state that imports fuel, you may wonder why there are no cheap gas prices near me. This is because the imported fuel supply can be more easily disrupted by international issues.
The market demand combined with restricted supply within these states leads to higher gasoline prices because of stagnated supplies. For instance, multiple refineries operate in California, yet they generate insufficient quantities of the distinctive gasoline product for the state. Gas prices within the state also experience spikes whenever one refinery faces operational problems because there exists no alternative supply system.
3. Transportation Costs
Gas prices vary widely based on transportation costs from refineries to terminals. States near major oil suppliers benefit from lower price per gallon, while those farther away incur higher expenses. Falling gas prices can be influenced by these factors.
However, the physical proximity to an oil refinery does not guarantee cheaper fuel prices at fuel stations. A refinery’s operational costs rely heavily on its size, geographical location to crude oil sources, and its market reach. For example, Washington maintained a $4.32 per gallon average gas price during 2024 even though its refining capacity exceeded 637,700 barrels daily.
4. Environment Policies
The government-set rules for pollution reduction lead to states enacting special fuel blend requirements. California Reformulated Gasoline (CaRFG) represents a unique blend of fuel that leads to unstable gas prices throughout the state. This is because the mix has limited availability beyond the state’s borders.
Conducting business following these set rules causes higher production and distribution expenses that consumers must pay. States that impose stronger cleaning standards on their fuel have higher gas prices than states without such stringent fuel regulations.
Source: 2023 State Gas Tax Rates
What Do Low Gas Prices Mean for Mississippi’s Residents?
The state of Mississippi benefits from reduced fuel costs, positively impacting both consumers and businesses. The following economic developments can occur when gas prices decrease:
1. Savings for Consumers
Lower gas prices allow Mississippi residents to allocate more funds to essential purchases like food and healthcare, boosting local businesses and supporting job creation.
2. Benefits for Local Businesses
Reduced gas prices lower operational costs for delivery and logistics services, allowing businesses to offer better pricing and expand profit margins for reinvestment.
3. Impact on Transportation and Logistics
Decreased fuel expenses enhance operational efficiency for transportation businesses, leading to quicker delivery times and improved customer satisfaction, allowing local firms to compete more effectively.
What to Expect for Gas Prices in Late 2025?
A decrease in U.S. gas prices is forecasted by GasBuddy for 2025. The forecast states that the national average price will decrease to $3.22 per gallon from the $3.33 per gallon average in 2024. Crude oil price reductions serve as the main factor behind this decline. Though market fluctuations will disrupt gasoline prices throughout the year, the cost will peak at $3.53 per gallon during April.
However, the overall gas price could face constraints due to seasonally adjusted price increases and reduced refinery production capacities. Geopolitical events alongside policy modifications, such as Mexican and Canadian crude oil import tariffs, are also expected to result in gas price fluctuations. In addition, gasoline prices will reach their yearly minimum of $2.89 per gallon when December 2025 arrives.
Furthermore, regional differences will exist. The cities located on the West Coast, such as Los Angeles and San Francisco, are expected to maintain fuel prices at $5 per gallon due to their existing fuel tax regulations. In short, the projected decline in American gas expenses will reach $12 billion less than in 2024. But gas prices may still be affected by elements such as extreme weather events and global supply chain disruption.
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FAQs (Frequently Asked Questions)
Q1: How can I save money on gas while traveling?
To save money on gas while traveling, find the cheapest gas along your route or schedule to deliver fuel straight to your fleet or equipment. Planning your stops based on the latest gas price information can lead to significant savings and help you stick to your budget.
Q2: What is the best way to keep track of gas prices?
The best way to keep track of gas prices is by using Fuel Logic’s diesel and gas price map. These tools allow users to monitor gas prices in real-time, making it easier to find the cheapest options and plan your fuel stops accordingly.
Q3: How consistent are state rankings throughout 2025?
State rankings for gas prices tend to fluctuate based on market dynamics, but states like Mississippi consistently offer some of the lowest gasoline prices due to lower taxes and living costs.
Q4: Why is Mississippi consistently low?
Mississippi often has the lowest gas prices in the U.S. due to a combination of lower fuel taxes, lower demand, and proximity to oil refining centers, which reduces transportation costs for fuel.
Get the Lowest Gas Price in 2025: Save Money with Fuel Logic
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