6. Illinois
> Regular gas price per gallon: $3.72
> Tax per gallon: 39.7 cents (5th highest)
> Number of oil refineries: 4
While the Illinois excise tax of 19 cents is below the U.S. average of 21 cents, the state charges an additional 20.7 cents in other state taxes and fees. That is the fifth highest of all states and higher than all but two states on this list. Meanwhile, prices at the pump sting a little more since the unemployment rate in Illinois is 8.7% as of June, topping the national average of 8.2%. If you live in Illinois and are near a state line, you might consider a drive across the border. Gas prices average $3.33 in Missouri, $3.47 in Kentucky and $3.57 in Indiana.
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5. New York
> Regular gas price per gallon: $3.77
> Tax per gallon: 49.3 cents (tied for the highest)
> Number of oil refineries: 0
Even more than in Illinois, New York’s gas prices are due to high gas taxes. While the state only levies an 8.1-cent excise tax, another 41.3 cents is tacked on in other state taxes and fees, a higher charge than in any other state. Meanwhile, New York has the third-highest cost of living out of all 50 states. Taxes, the high cost of living and the fact that New York has no oil refineries means that drivers can expect to pay a hefty price at the pump. It does not help that many New Yorkers are without work. The state’s 8.9% unemployment rate, up from 8.2% in June 2011, rose more in the past year than any other state in the country. It is the only state on this list to see a higher percentage of people unemployed now than a year ago.
4. California
> Regular gas price per gallon: $3.80
> Tax per gallon: 49.3 cents (tied for the highest)
> Number of oil refineries: 16
Gasoline prices in California, as in New York, can be partially explained by high taxes. Californians pay as much in state taxes as New Yorkers, and more than residents of any of the other 48 states. The state’s excise tax rate, 36 cents per gallon, is the third highest in the nation. These taxes likely help offset any price benefits consumers might receive from having 16 operating refineries in the state, processing 1.96 million barrels of oil a day. Though the price of gas in the state has risen about 1.25% in the past month, this is a smaller increase than in all but 13 other states.
3. Connecticut
> Regular gas price per gallon: $3.82
> Tax per gallon: $0.45 (4th highest)
> Number of oil refineries: 0
Connecticut has the highest gas prices in the continental U.S., as well as the second-highest transportation costs in the country — behind only Hawaii. Furthermore, not only does Connecticut not have any refineries, but not one state in New England had an operating refinery as of the beginning of this year. Additionally, residents pay the third-highest gas tax rates in the country — 45 cents split between a 25-cent excise tax and 20 cents in other taxes.
2. Alaska
> Regular gas price per gallon: $4.00
> Tax per gallon: 8 cents (the lowest)
> Number of oil refineries: 6
Just because oil production is a major industry in Alaska and the state has the lowest taxes per gallon of gas, that does not mean filling up the tank is cheap. Alaska still manages to have the second-highest gas prices in the U.S. and is only one of two states to crack $4 a gallon for regular. The state has the second-highest cost of living after Hawaii, certainly supported by the high gas price. The cost of utilities is the second highest behind Hawaii, and the cost of transportation is third highest behind Hawaii and Connecticut.
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1. Hawaii
> Regular gas price per gallon: $4.15
> Tax per gallon: 48.3 cents (3rd highest)
> Number of oil refineries: 2
As of the end of July, Hawaii had the highest gas prices in the country. This is nothing new for Hawaiians, who paid the highest price nationwide last week, last month and last year. Residents also pay 48.3 cents per gallon in state taxes, the third-highest rate in the country. The relative cost of living in Hawaii is the highest in the nation, as are transportation and utilities costs. Since the end of July 2011, Hawaii is the only state in the U.S. that has seen a net increase in price. There has been some relief recently; though gas prices rose across the country in the past month, prices fell 12 cents per gallon in Hawaii.
Samuel Weigley and Alexander E. M. Hess
