As gasoline prices decline across the country, the price of a gallon of regular has fallen below $3.25 in 10 states. The national average is $3.44, according to GasBuddy, down from $3.58 a year ago.
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Most of the states where gas prices are below $3.25 are either near huge refineries or have low state gas taxes. Among those close to the refineries along the Gulf of Mexico are Mississippi ($3.16), Louisiana ($3.19), Alabama ($3.20) and Texas ($3.23). Huge oil producer Oklahoma also has an usually low price at $3.24.
South Carolina ranks 47th in gas taxes among all states at $0.16 per gallon. It also has the lowest average gas price at $3.14. The price of gas in Virginia is $3.18. It ranks 40th in gas tax at $0.175, according to the Tax Foundation. Arkansas’s gas price is $3.19. It is adjacent to Texas, Mississippi and Louisiana on the Gulf, keeping transportation from refineries low and ranks 35th in gas tax at $0.215. Tennessee ranks 36th in gas tax at $0.20. The price of gas there is $3.20, and it is adjacent to Louisiana and Alabama. The gas tax in Missouri is 45th in the United States at $0.17, and the state touches Oklahoma, Tennessee and Arkansas.
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Gas taxes have continued to drop since Labor Day and are projected to fall further. According to the AP:
A national survey says the average price of a gallon of regular gasoline has dropped 2 cents over the last two weeks, to $3.46, bringing the decline to 25 cents over the last 11 weeks.
Industry analyst Trilby Lundberg said Sunday that falling crude oil prices drove the declines, although the drop was more moderate than earlier this summer. If crude prices don’t rise, Lundberg says prices at the pump may fall more as refiners shift to winter-grade gasoline, which costs less to produce.
Many economists believe that falling gas prices will free up consumer discretionary income, particularly among lower- and middle-class homes, as the year moves toward a close. If so, third-quarter and fourth-quarter gross domestic product (GDP) should get some aid.
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