Energy Business

The 10 States With the Cheapest Gas

Douglas A. McIntyre

10. Idaho
> Price per gallon, regular: $3.60 (tied for ninth)
> Cost of living: 9th lowest
> Median household income: $43,490 (13th lowest)
> Tax per gallon: 25 cents (25th highest)

Idaho is tied with Alabama for having the ninth-lowest gas prices in the country, with regular selling for $3.60 per gallon. Gas prices actually have fallen by 12 cents in Idaho in the past five months. The state’s cost of living is also the ninth-lowest in the country, although the cost of transportation is not as low compared to the other states. The median household income in Idaho is also rather low.

9. Alabama
> Price per gallon, regular: $3.60 (tied for ninth)
> Cost of living: 13th lowest
> Median household income: $40,474 (5th lowest)
> Tax per gallon: 20.9 cents (14th lowest)

The price of a gallon of regular unleaded in Alabama is just $3.60, tied with Idaho for the ninth-lowest gas prices in the country. A number of factors work to keep gas prices low in the state. Alabama is located along the Gulf of Mexico, allowing it access to offshore as well as shipped oil. The state also has three oil refineries, which helps to reduce gas transportation costs. Gas taxes are also quite low. At 20.9 cents per gallon, gas taxes are the 14th lowest in the country.

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8. Tennessee
> Price per gallon, regular: $3.59
> Cost of living: 2nd lowest
> Median household income: $41,461 (sixth lowest)
> Tax per gallon: 21.4 cents (15th lowest)

Tennessee has among the country’s lowest median household incomes. It also has the second-lowest cost of living. Although the price of regular gas has increased by nearly 40 cents in Tennessee over the past five months, it remains among the lowest rates in the country. The state also has a relatively low tax on gas. Tennessee is home to a single oil refinery, located in Memphis.

7. Mississippi
> Price per gallon, regular: $3.59
> Cost of living: 8th lowest
> Median household income: $36,851 (the lowest)
> Tax per gallon: 18.8 cents (seventh lowest)

The cost of a gallon of regular gasoline in Mississippi was $3.26 five months ago. Today, it is $3.59 per gallon. Mississippi has the lowest median income and the highest poverty rate in the country. While this 33 cent increase likely has hurt the budgets of state residents, prices are still quite low compared to most of the country. Like Alabama, Mississippi has access to the offshore drilling production of the Gulf of Mexico, which, along with the presence of three refineries, helps temper the price of gas. Gas taxes are also just 18.8 cents per gallon, the seventh lowest in the country.

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6. Arkansas
> Price per gallon, regular: $3.58
> Cost of living: 5th lowest
> Median household income: $38,307 (third lowest)
> Tax per gallon: 19.0 cents (ninth lowest)

The price of a gallon of regular gas has increased by 30 cents in Arkansas in the past five months to $3.58 per gallon currently. Despite the increase, this is still the sixth-lowest price in the country. Arkansas has the third-lowest median household income and the fifth-lowest overall cost of living in the country. The overall cost of transportation in the state is the third-lowest in the nation. Arkansas also has one of the lowest gasoline taxes among the states at 19 cents per gallon.