Gasoline prices have dropped to $1.27 or less a gallon in 28 gas stations in and around Oklahoma City. It should be no surprise, because Oklahoma has the lowest gas prices among all states, based on the amount charged for a gallon of regular at $1.47, according to GasBuddy. However, for some reason, a cluster of stations is well below that.
The 28 stations are in Norman, Midwest City and Oklahoma City proper. The proximity of the stations to one another would indicate that prices have been dropped to attract local customers and improve market share.
Most of the stations with the highest gas prices in the United States are in and around the large cities in California, which has the highest average price among all states. As a matter of fact, of the 30 stations with the most expensive gas, 26 are in California. These cities include San Francisco, Los Angeles, Thousand Oaks, Studio City, San Bruno, Santa Monica and Glendale.
That national average will go lower, probably much lower. Crude oil prices have dropped to $30. A year ago, the price was nearly $65 a barrel. One main reason for the drop in gasoline prices is the sea of available oil, due in part to a flood from Saudi Arabia, and perhaps to falling demand as the global economy slows. Despite the loud protests of other OPEC members, the kingdom said it will keep pumping.
Oil inventory is not the only factor. Proximity to refineries is also an issue. The average gas price in Louisiana is $1.62, and in Texas it is $1.59. Like Oklahoma, they are near the huge refineries south of Houston and on the Gulf of Mexico, which is dotted by deepwater oil drilling platforms.
Gasoline taxes by state are another factor. The average nationwide is $0.48 per gallon. Oklahoma has the fourth lowest gas and levy rate of all states at $0.35 per gallon. The national average is $0.48, according to the API. The highest is in Pennsylvania at $0.688.
California has the fifth highest gas tax in the United States at $0.59 a gallon, which is likely the reason that gas prices are so high across the state.
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