The 10 States with the Cheapest Gas

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10. Kansas
> Regular gas price per gallon: $3.22
> Tax per gallon: 25.0 cents (25th lowest)
> Number of operating refineries: 3

A gallon of gas in Kansas currently costs 16 cents less than the national average, roughly the same price difference as a year ago. But, like the most of the country, gas prices in the state have risen year-over-year, with gas now 10 cents more expensive than it was this time last year. The highest recorded average gas price in Kansas was $4.02 per gallon in July 2008, while the highest price this year was $3.80 at the start of September.

9. Alabama
> Regular gas price per gallon: $3.21
> Tax per gallon: 20.9 cents (13th lowest)
> Number of operating refineries: 3

The highest gas price in Alabama of $4.05 per gallon was recorded in September, 2008. More recently, gas prices peaked at roughly $3.75 per gallon in April of this year. Prices have since fallen by more than 50 cents to the current price of $3.21 a gallon. While the state does not have particularly strong refining — it processes 180,000 barrels per day, 18th in the country — Alabama is located in the gulf coast region, home to the two biggest refiners in the country, Texas and Louisiana.

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8. Louisiana
> Regular gas price per gallon: $3.19
> Tax per gallon: 20.0 cents (tied for 11th lowest)
> Number of operating refineries: 18

Louisiana’s gas price of $3.19 a gallon is down 11 cents from a month earlier, and way below the nearly $3.80 a gallon reached in early April. In many of Louisiana’s larger metropolitan areas, prices are even lower. In New Orleans, the average price of gasoline is $3.16 a gallon. In the Shreveport-Bossier City area, the average price is just $3.13. Helping to keep prices low are Louisiana’s 18 refineries, which is more than any other state except for Texas. The state also has a refining capacity of over 3 million barrels per day, second-highest in the U.S.

7. Mississippi
> Regular gas price per gallon: $3.17
> Tax per gallon: 18.8 cents (17th lowest)
> Number of operating refineries: 3

Current gas prices in Mississippi are $3.17 per gallon, down 9 cents from a month ago — a larger decline than the 8 cents drop nationwide and well below the $3.75 per gallon – $3.80 per gallon recorded in early April. But while gas prices in Mississippi are lower than most states in the country, Mississippi’s residents are hurting more than most. The state’s median household income in 2011 was a nationwide-low $36,919, while the unemployment rate of 8.9% in October of this year was a percentage point higher than the national unemployment rate.

6. Arkansas
> Regular gas price per gallon: $3.16
> Tax per gallon: 21.8 cents (16th lowest)
> Number of operating refineries: 2

Arkansas does not have an especially large refining capacity. With just two refineries, its capacity is under 100,000 barrels per day and lower than half of all states. Still, the state benefits from its proximity to Texas and Louisiana, the two states with the highest refining capacity in the country. As of the second quarter of this year, Arkansas had one of the country’s lowest costs of living. This is partly due to the state having the fifth-lowest cost of transportation, which is largely determined by the price of gas.