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If rising grocery prices and housing costs weren’t enough, U.S. consumers can now add soaring gas prices to the list of expenses that are straining their wallets. On March 13, the price per gallon surged to $3.63, according to AAA. That’s up more than 23% from the $2.94 per gallon Americans were paying just one month ago. It’s also nearly 18% higher than the cost of gas this same time last year.
While gas prices typically begin to spike in spring and summer, the dramatic jump in the cost to fill up your tank this year has been influenced by the recent conflict with Iran. About 20% of the global oil supply needs to pass through the Strait of Hormuz to reach its final destination. That supply route has ground to a halt since the conflict started and there are few alternatives for transporting the oil via any other routes.
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Which states have the highest gas prices right now?
Currently, the states that typically have higher gas prices, regardless of geopolitical events, continue to pay the most for gas. As of March 13, California leads the pack with an average price of $5.41 per gallon.
While Californians already pay above-average prices to fill their tanks, that price still represents a 79-cent price hike since January. The state has also witnessed one of the largest price jumps since January 20.
Californians are the only ones paying above $5 per gallon right now, but other states are still feeling the pinch. Here are the top five states where gas prices are highest this spring:
|
State |
Price (March 13) |
Increase (since Jan 20, $) |
Increase (since Jan 20, %) |
|
California |
$5.41 |
$0.79 |
17.09% |
|
Hawaii |
$4.84 |
$0.15 |
3.09% |
|
Washington |
$4.76 |
$0.31 |
6.96% |
|
Nevada |
$4.44 |
$0.64 |
16.84% |
|
Oregon |
$4.33 |
$0.63 |
17.02% |
These 5 states saw gas prices jump the most
Drivers in some historically lower cost states are being hit even harder than the west coast. They may not be paying as much as Californians and Washingtonians, but prices have shot up so fast over the past couple of months that it feels like a bigger hit to the wallet.
In Arizona, for example, you could fill up for just $3.17 per gallon on average on January 20. By March 13, that price had soared to $4.10. That’s nearly 30% per gallon in a matter of weeks.
Other states have seen similar double-digit inflation at the pump. Here are the five states that have seen the biggest price hikes since January 20:
|
State |
Price (March 13) |
Increase (since Jan 20, $) |
Increase (since Jan 20, %) |
|
Arizona |
$4.10 |
$0.93 |
29.33% |
|
Florida |
$3.71 |
$0.66 |
21.64% |
|
Michigan |
$3.59 |
$0.61 |
20.47% |
|
California |
$5.41 |
$0.79 |
17.09% |
|
Oregon |
$4.33 |
$0.63 |
17.02% |
The cheapest states for gas
At the same time that states on the West Coast see prices surge well above $4 per gallon, states throughout the Midwest are still enjoying below-average costs for gas.
In Kansas, for example, regular unleaded averages just $3.07 as of March 13. That’s over 50 cents below the national average.
Here are the five states that are paying the least for gas right now:
|
State |
Price (March 13) |
Increase (since Jan 20, $) |
Increase (since Jan 20, %) |
|
Kansas |
$3.07 |
$0.29 |
10.43% |
|
North Dakota |
$3.12 |
$0.15 |
5.05% |
|
Oklahoma |
$3.14 |
$0.42 |
15.44% |
|
Arkansas |
$3.14 |
$0.35 |
12.54% |
|
Missouri |
$3.15 |
$0.35 |
12.50% |
As you can see, despite the below average price tag, most of these states where gas is cheapest are still seeing double digit price jumps since January 20.
Why gas prices vary so much by state
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Comparing prices at the pump across the United States reveals just how widely costs vary from one state to another. The difference between the cheapest state (Kansas) and the most expensive state (California) is well over $2.
What causes dramatic price differences like these? There are a lot of factors. For one, gas taxes vary widely between states and some states (like California) have much stricter environmental standards, making the cost of compliance more expensive compared to a less strict state. That includes special fuel blend requirements that are designed to reduce air pollution but also cost more to produce.
Beyond varying tax and legal landscapes, gas prices are also impacted by logistical factors. States like Oklahoma are located closer to the refineries and pipelines that pump out fuel so they’re paying less to transport gasoline from the producer to the station where drivers fill up.
What could happen to gas prices next?
Unfortunately for drivers, gas prices are likely to keep climbing in the short term. The Iran conflict has thrown the global supply chain into doubt and resuming normal traffic through the Persian Gulf won’t be able to happen until it ends – and even then, it will take a few weeks after the war ends to resume normal traffic.
It’s not just the conflict that drivers need to worry about, either. The U.S. is at the cusp of peak fuel demand, with spring break kicking off months of increased travel.
With that said, the U.S. Energy Secretary announced the release of 172 million barrels of oil from the nation’s strategic reserves earlier this week. Slated to be released over the next four months, the reserves are meant to help curb rising prices.
