The State Where You Can Buy Gasoline for $3

Nationwide, the average cost of a gallon of regular gasoline is $3.66. Although the price has risen most days in the past month, the trend has leveled. Gas prices vary tremendously from state to state. It is $3.05 per gallon in Mississippi, the lowest in the country, and $5.31 in California, the highest state average.

Mississippi has several advantages that keep gas prices low. It is near the large refineries on the Gulf Coast. Among other things, transportation of gasoline to Mississippi is low. Several other states in the area enjoy similar gas prices. In Texas, Alabama, Oklahoma, and Arkansas, it is below $3.25 a gallon.

Another primary reason is state gasoline taxes. The U.S. average is $0.5709 per gallon. Alaska has the lowest tax at $0.3353. Louisiana, Mississippi, Oklahoma, and Texas are below $0.40 a gallon. The California figure is $0.8655, much higher than any other state. (See exactly how much each state taxes gasoline.)

The Tax Foundation says about gasoline taxes that “Funds generated from a gas tax pay for related government services like road construction, maintenance, repair, and public transportation.” Mississippi must have the best roads in the nation.

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