What’s the cost of getting from A to B? It turns out that filling the tank has a different impact on depending on location, with some states offering more budget-friendly prices than others.

U.S. inflation accelerated in January, with the cost of a gallon of gasoline increasing 1.8% from December 2024, according to the latest Consumer Price Index (CPI). The price of filling up is down 0.2% versus the same time last year, but is still 18.7% higher than January 2020, at the onset of the pandemic.¹

Paying up

Currently, AAA reports the national average price for a gallon of regular gasoline stands at $3.15, with premium gasoline averaging $3.98 per gallon.²

State-wide prices, however, tell a different story. Gas prices vary regionally due to factors such as taxes, transportation costs, supply chains, and local regulations. States with higher fuel taxes or limited access to refineries typically have higher prices, while those with lower taxes or abundant local supply often enjoy cheaper rates.³

Average gas prices by state

Which states are paying more at the pump? The most recent data reveals Americans in California are paying the most for gas at $4.74 a gallon on average for regular fuel. They are closely followed by residents in Hawaii ($4.55), Washington ($4.07), Nevada ($3.81), and Oregon ($3.71). At the other end of the spectrum, the least expensive gasoline markets are Mississippi ($2.68), Texas ($2.74), Oklahoma ($2.75), Louisiana ($2.76), and Kentucky ($2.79).⁴

Highest and lowest spending by state

How does the cost of gas compare to what people are actually spending? Empower Personal DashboardTM data* reveals how much Americans are spending at the pump each month.

Nationally, drivers spend $127.81 a month on average, at $46.74 per transaction. At the state level, these are the 10 states with the highest and lowest expenditures during each visit to a gas station per the most recent Empower data:

Will prices tank?

Experts say gas prices could be set to increase if a new 10% tariff on Canadian energy imports to the U.S. is enacted in March. How much fuel prices would rise due will depend on how Canadian producers and U.S. refiners respond. In general, a 10% tariff passed to the consumer could increase fuel prices by about 15 cents per gallon.⁵