E-mail updates
Follow on Twitter
Subscribe to RSS
Jim Weber / AP
Travis Wayne fills a tank in Memphis, Tenn. Gas prices in the state have decreased by 9.7 percent in the past 12 months -- the fourth-biggest decline in the country.
Fiscal woes in Europe and sluggish job growth in the United States have put downward pressures on oil prices. As a result, gasoline prices declined in all but two states over the past month, dropping 7.1 percent across the country. In many of these, gas prices are on the verge of falling below $3 per gallon.
Despite the overall decline, the range between gas prices among states is still wide. 24/7 Wall St. examined AAA’s Daily Fuel Gauge Report to determine the 10 states whose residents pay the least at the pump. We found that the most decisive factor in determining gas prices is location. Most of the states with low gas prices are located on or near the Gulf of Mexico. They also have among the lowest gas taxes in the country.
Five of the 10 states with the lowest gas prices are located on the Gulf Coast, where a disproportionate amount of crude oil is processed. Furthermore, among the five states not on the Gulf Coast, three border the coastal states. Residents of these three states benefit from lower costs of transporting oil.
“Gulf Coast states benefit from having ready access to the refineries that are in the region,” says AAA spokesperson Michael Green. “In fact, Gulf Coast refineries produce the most gasoline of any region in the country, and generally have a surplus, which means they’re sending gasoline that’s made in Gulf Coast refineries to other parts of the country.”
The states with the lowest gas prices have seen a more precipitous decline in those prices compared to the rest of the country. South Carolina and Mississippi, the states with the two lowest gas prices, now enjoy 9.1 percent lower prices compared to a month ago. Green points out that West Texas Intermediate (WTI) crude oil, which is produced primarily in the Gulf Coast region, is cheaper than other forms of crude and has seen a faster decline in price.
24/7 Wall St.: The most dangerous cars in America
Another factor determining gas prices is a state’s gasoline tax. All but two of the states on this list are in the bottom half of states in terms of total taxes charged, which include a federal 18.4 cents a gallon tax and state taxes. But the relationship between gas taxes and prices is far from perfect. Alaska has the lowest gas tax but the second-highest gas prices. The states with the second- and third-lowest gas taxes, Wyoming and New Jersey, did not make our list.
While not always the case, transportation costs in the states on 24/7’s list tend to be lower than the national average. Nine of the 10 states are in the lower half of states in terms transportation costs, while three are in the bottom 10 states.
AAA provided 24/7 Wall St. with the most recent available average price of regular unleaded gasoline by state. The organization also provided prices from one week, one month and one year ago. 24/7 Wall St. also examined the number of refineries and total refining capacity as of January 1 of this year, provided by the U.S. Energy Information Administration. The American Petroleum Institute provided state gas taxes, which were also as of the beginning of this year. This includes state gas excise taxes, as well as other taxes (including sales tax).
These are the 10 states with the cheapest gas.
1. South Carolina
- Regular gas price per gallon: $2.99
- Tax per gallon: 16.8 cents (4th lowest)
- Number of operating oil refineries: 0
South Carolina has the lowest average gas prices in the nation, and is the only state currently under the $3 per gallon mark. Compared to last year, gasoline prices in the state have decreased by 10.5 percent -- tying Mississippi for the highest proportional decrease in the country. Low prices in South Carolina are likely due in part to the low tax per gallon of 16.8 cents, which is the fourth lowest in the country. South Carolina’s prices have fallen by about 19 percent since their early April peak of $3.70.
24/7 Wall St.: America's most fuel efficient cars
2. Mississippi
- Regular gas price per gallon: $3.06
- Tax per gallon: 18.8 cents (7th lowest)
- Number of operating oil refineries: 3
Gasoline prices are down about 18 percent from Mississippi’s yearly peak in the first week of April. The state ranks among the lowest in total taxes and fees per gallon of gas, which help keep its fuel prices low. The three refineries in Mississippi process 364,000 barrels of raw crude per day, the 11th most in the country. Low carrying costs for fuel could therefore also contribute to the state’s low gasoline prices. There is just a 19 cents per gallon tax for gas sold in Mississippi, the seventh-lowest in the country. The state also has no sales tax to drive up what people pay at the pump.
3. Alabama
- Regular gas price per gallon: $3.07
- Tax per gallon: 20.9 cents (14th lowest)
- Number of operating oil refineries: 3
Alabama has three major refineries that process 120,000 barrels of crude each day. The state also had a 36-cent decrease in gas prices last year -- the highest decline in the nation. Gasoline prices continue to drop rapidly in the state, with an 8 percent decline last month alone. Transportation costs in Alabama are the ninth lowest in the country, and the state has the eighth-lowest excise tax, at 16 cents per gallon.
24/7 Wall St.: The most dangerous states to drive in
4. Tennessee
- Regular gas price per gallon: $3.08
- Tax per gallon: 21.4 cents (15th lowest)
- Number of operating oil refineries: 1
Average gas prices in Tennessee have decreased by 9.7 percent in the past 12 months (the fourth-biggest decline in the country). In the past month alone, gas prices fell by 28 cents, an 8.3 percent decrease. According to the Cost of Living Index, low gas prices help drivers in Tennessee enjoy the seventh-lowest cost of transportation in the U.S. Tennessee drivers also pay the 15th-lowest state taxes on gas in the nation, at just 21.4 cents to the gallon, according to the American Petroleum Institute.
5. Louisiana
- Regular gas price per gallon: $3.16
- Tax per gallon: 20 cents (tied for 12th lowest)
- Number of oil refineries: 18
Louisiana is second to Texas in the number of oil refineries and gallons of oil processed per day, at more than 3.2 million barrels between its 18 major refineries. With close proximity to offshore drilling in the Gulf and the relatively low state tax on gas -- 20 cents per gallon -- Louisiana drivers pay some of the lowest gas prices in the nation.
Read the rest of the list of states with the cheapest gas at the 24/7 Wall St. website
More money and business news:
- Reverse mortgages confuse elderly, report finds
- Diners love Biaggi's, aren't so friendly to Friendly's
- Hng n, txtin': 4 in 5 drivers say they're distracted
- Video: Murdoch happy about Fox News parent split
- Sign up for our Business newsletter
Follow msnbc.com business on Twitter and Facebook
Leave a Comment:
The Dick Cheney and his SECRET MEETING 2001 set the stage to turn the screw in us. Having us get use to paying around $2.50 -3.00/g . Nothing has changed in the world to cause such an increase. In fact, drilling and recovery is more cost efficient now than at any time in the past. The other factor is traders that bet on our misfortunes. We are idiots to not revolt and get the government to STOP THIS!
If the meeting was secret, how do you know it happened?
Unless...YOU WERE THERE?!
Dun dun dunnnnnnnn!
Their ain't pushin me round. I's gonna get me a 520 horse Slaugherator today, right after the gater down Billy Rays.
cheetah.....um...wft was that nonsense?
and i'll predict in less than a month, gas prices will jump back up to $4/gallon or thereabouts...because day traders think "it's a good time to buy!"...
im sure it'll get blamed on some arab spring or broken oil rig somewhere...isnt a hurricane coming that we can blame it on so the idiots dont realize wall street is screwing us sideways, upways, downways and backways?
Expect oil prices to go up after today's Eurozone agreement. And we are being programmed into paying upwards of 3 bucks a gallon. Oil prices were at $80 a barrel so Big-Oil is getting fatter and fatter. We're all a bunch of suckers. When the hell are they going to build a decent electric car because I'm in! I'm sick of feeding my hard earned money into the drooling, lip smacking, gaping mouths of these oil scumbags.
boom! reason,
That was 11 years ago. What were you, probably about 11 then... Any imbecile knows there was a meeting . . . it's just that the Dick would not let the results of the meeting be divulged to the public.
Dumb, dumb, duuuuuummmmmmmmbbbbb
Were space aliens there too ???? Elvis in the closet ?
Indeed you are.
In that meeting I'm certain that they were also discussing ways to penetrate tinfoil hats so that they can steal your thoughts.
Of course there were! Who else would Cheney have been plotting with? Bin Laden was also there, because 9/11 was an inside job.
What the big oil comanies do is jump on any news that can,in their eyes, justify the rise of gas prices,,,,,Then they lower the prices a bit, but not as much as they originally went up. Slowly, year after year, they raise the gas prices with these little increases, and stupid us, we are relieved that the prices have come down some. Tricky little suckers!!!!!
omega...time to take your paranoia meds. There is no boogie man except for the one in your mind. Oil companies only have control of fuel at the retail level...not at the wholesale level which is driven 99.9% by world commodity markets. Additionally, oil companies profits don't come from retail sales...we don't make crap on retail fuels. The bulk of oil companies profits come from trading crude on the open market. It's simple math...market prices for crude goes up, our profits likewise go up because our costs to pull it out the ground don't increase at the same rate.
Get educated before you foam at the mouth with dumbass conjecture and watch something besides FAUX News for Dumb Fux once in a while.
"The bulk of oil companies profits come from trading crude on the open market"
maybe, just maybe, it should stop being an item we "trade" on the open market.
furthermore, when "our" oil producers are shipping MOST of their product overseas, it's doing nothing to bring down prices here (just as they want it).
It's collusion pure and simple.
and thats why im opposed to more drilling. it's not going to stay here and bring our prices down (which is the sales pitch)...it'll only drive up profits for the Koch brothers, and those like them.
Sorry, I dont care to help them get richer if they dont care to make a little less and help save us some money, ya know, we are the ones who really need the "help"...
Jessica....sorry sweetie. You also have a lot to learn about the energy industry and much more to learn about what "nationalizing" a natural resource really means and its pitfalls.
And no...it's not "collusion". Collusion is when a bunch of industry fatcats cram into a cigar smoke-filled room and discuss how to manipulate the market. The FTC has done numerous anti-trust investigations and every time they have found nothing. So...sorry...as I said above...there is no boogie man.
Lastly, you live in a capitolist society. Like it or not, nobody is responsible for your financial well-being other than yourself. Companies are in business to make profits, keep people employed and keep the economy robust....not to become charities. If you want to live in society where the government controls everything then move to China or North Korea.
And of course, everything we buy is priced at what it costs to manufacture and handle and whatever profits that manufacturer seeks. Every seller has figured out what the population will pay and they act accordingly. The oil companies seem to have done a great job of fine tuning that art and we pay their price. They know we have to have that stuff. Until we become less dependent on oil products, we will pay what they want us to pay.
Liberal Logic;
BAD;
" Greedy" Oil Companies who actually produce the product making .08 cents per gallon
Good;
Fed tax.... 19 cents per gallon
State tax.....10 cents per gallon ( and up in some states)
Politicians...who own stock in those same "greedy " company's
Devalued dollar....(takes more to buy the same product)
Apparently that's enough for them to make record profits.
Economies of scale is apparently lost on you. The US uses about 400 millions of gallons of gas per day. That makes of profit of $32 million dollars per day, or $11,680,000,000 profit per year.
Don't try to make the facts say something other than what they do. You were trying to imply they only receive 8 cents per gallon, when that's their profit. It's good enough for them.
"he US uses about 400 millions of gallons of gas per day. That makes of profit of $32 million dollars per day"
That's an 8% profit.
How many products make less than an 8% profit? Gas companies make a killing because they sell a product that is, literally, used for everything.
That's not 8% profit; your math is bad. It's quite less than 8%.
Many products are sold with low profit margins because they focus on quantity sold, which leads to great profits.
It's misleading to assume that they make "too little profit" just because it's 8 cents per gallon, which is the argument Tramp was implying. They would not be in business if it was too little for them.
I can't wait to see how people misinterpret my comments and lump me into some group (most likely the group that is "other" to them) based on their bias.
You're right, 8% profit would be at $1 a gallon.
"It's misleading to assume that they make "too little profit" just because it's 8 cents per gallon, which is the argument Tramp was implying. They would not be in business if it was too little for them."
8 cents per gallon is about 1.20 in profits per fill up. How much less profit do you want them to make?
Refer to the last sentence of my previous post. Notice how I was aware that people like you would misinterpret what I was saying.
Additionally, you are incorrect to assume that they make little profits. See my 3.1 post for more details.
It's amazing how people like you don't read comments, but think they can properly respond to them.
"How much less profit do you want them to make?"
if they are only making .08/gallon...whats accounting for the fluctuations between $3/gallon and $4/gallon?
Perhaps they dont need to make less profits, but rather, we need to eliminate what is causing the flucuations so that our economy isnt thrown into despair everytime "whatever it is" that happens causes our gas to top $4/gallon.
If that means outlawing speculation...or requiring our oil producers to keep the oil here, and not sell it overseas for more money (and maybe that brings down their profits)...or if that means subsidizing alternative energy sources so that gas has no choice but to plummet in order to compete...
then so be it.
I dont see why our economy should tank every time oil producers hit the jackpot...ITS ECONOMIC TREASON.
how much profit is enough before you say "im going to help my fellow americans not struggle so badly"? I dont know, thats a question for the Koch brothers...they seem pretty content spending their profits on influencing our govt at every level.
Thats scares the hell out of me when you combine that with the economic treason that is occuring.
I will admit to you reason, that I may be lost in your calculations and I blame lack of sleep so I am not trying to discredit your numbers. The last report I saw, about a year ago, stated that the stations get about $.08/gal The oil companies themselves make a profit of, assuming $3/gal (not including taxes) of about $.75 for regular, and just shy of $1 for premium. per gallon sold. I could be wrong and most likely am as I am trying to remember the article I read a year ago as I was trying to support my defense of the local stations not to blame for high prices.
Conservative Ignorance:
Hmm.. in 2011, the top 3 OIL Corporations in this country took home 80 BILLION in profits...... 4.5 MILLION per Hour. I think they are doing quite well on the backs of the American people. We no longer need to continue giving them a 'tax subsidy' of 20 billion over the next 10 years.
My numbers were only based upon Tramp's figures. I was not able to immediately find reputable information, so I went along with the numbers given to disprove Tramp's argument, which was still effective.
I make no claim to the accuracy of the "8 cent" figure, just to the accuracy of the calculations.
In the small town of Oxford, NC where I live, the price is $2.94. Thirty miles away in Durham and Raleigh, it's anywhere from 3.19 to 3.34. Go figure.
And we do have a rather high tax on gas, but for those who don't know about why gas is taxed, it pays for our roads, bridges, upkeep for both, and other infrastructure that we need to be able to drive our vehicles.
As a proud LIBERAL, who is in the upper middle class money-wise, I don't want to be gouged with taxes and don't believe I am; but gas taxes are there for a reason and yes, my "liberal logic" supports the reason.
I do wish that there were selected states where all the conservative tea bagger types could all live together, pay no taxes whatsoever for anything and see how fast they revert back to the stone age. Gosh how I wish that. I wonder if Tennessee, Mississippi, Alabama, Idaho, Montana and Kentucky would consider throwing out what liberals may be unlucky enough to live there, and inviting only tea party folks to live there. That would be wonderful, no doubt, for them but for sure it would be wonderful for the rest of us.
Sounds like a plan. I vote your state. Keep my state out of it.
"As a proud LIBERAL, who is in the upper middle class money-wise"
"...but for sure it would be wonderful for the rest of us."
Here, let me hold you monocle. I wouldn't want your elitist hand to be tarnished by it.
Oxford had a population of 8,461 according to the 2010 census; Raleigh had 403,892.
Raleigh also has a greater median per capita income than Oxford, and is the state capital. There are many, many, reasons why prices are higher there than in a dinky town.
lets do the math: 400 million gallons at say $3 a gallon that would be 1.2 billion in sales X 8% = 96 million in profit.
See post #3.3
So, boom, looks like more than "dinky" towns like mine have low prices. I don't consider Charleston to be a dinky town, anyway. And a large population means more customers, so there should be more competition and lower prices.
And, sure, Raleigh has people with an income similar to mine - and they're having to pay more for gas.
And Matt, LOL, no won't get any tarnish - I wear "gloves." I never know when I might have to touch a tea bagger which could be from your state, and I sure wouldn't want to pick up one of their DNA stupid strands.
Don't have a monocle though. I'm a woman and wear contacts. I'll admit they are tinted a lighter shade of blue than my eyes. Costs a little more, but one of my many perks.
@boom! reason
Ok, riddle me this...
I have 3 gas stations all within .2 miles from my house. One, for regular, its 3.28/gal One is 3.35/gal and one, for some odd reason, is 3.45/gal When you go into premium gas, the spread is even more. One of them is still charging 3.98/gal where most have come down to under 3.60/gal
.4 miles separate them, why such drastic changes in fuel costs? (they are all Hess stations by the way)
South Carolina always has lower prices than North Carolina. South Carolina has about 20 cents lower gasoline tax than North Carolina. You can't really compare this across states.
It's "dinky" in size when compared to Raleigh. I'm not making any judgments about the town itself, just using the term to describe the size.
Any more questions?
I'll need a little more information, such as location. Gas prices tend to be higher the closer they are to the interstate, or the closer they are to something "interesting." Additionally, if any of them are on different sides of some border, that can affect prices as well. Prices tend to depress when they get to sketchier parts of town, etc. etc.
Prices are set by headquarters, not the individual stations. They have some algorithm based on many factors, aka a method to their madness.
It's the same way in SW GA go north from here it's under $3.00 go south toward the FL line & it's around 15 cent higher. It's $3.04 is the cheapest i've seen it in my city.
I live in Charleston, SC and just bought gas at 2.97 a gallon. :)
Here in Columbia, some places are down to 2.86 or less.
We have it in Greenville for $2.68 a gallon.
2.82 in Myrtle Beach.
Basic lesson, if you're not hostile to big oil, you get cheap oil.
peanut - thats hilarious.
so essentially we have to kiss their butts to get fair prices?
what is this an oligarchy? or corporate facist nation?
you got it jessica. At the opposite end is santa barbara. After that oil spill in the 60s they banned off shore drilling and they spent the last 40 yrs wondering why their gas costs so much more than the surrounding areas.
I live in SC too and bath in the stuff.
Ew.
In my younger days I worked on a concrete construction crew & one of the guys there from Tennesee used diesel fuel for sun tan lotion. :-)
Western Pennsylvania....$3.45
In AL, saw it as low as $2.87 the other day. Under $3 everywhere.
Western Wisconsin is $3.59. With the price of oil is around $100.00 per/ barrel right now if it was back a few years, and not all that long ago the price at the pump it would be $1.50/gal but they have used that sliding scale price fixing ruteen so will that people just don't say anything about it, the price is $1.50/ gal they raise it to $ 2.65 / for a mouth then they lower it to $1.85/ and the price never see $1.50 ever again and we think it is wonderful at $1.85... it's like taking sheep to slaughter... but now with oil / barrel at a low. now the oil company's claim there a two refinery's that are down for repair, this keeping the price high. with are people in this country going to say enough is enough???????
$2.88 in Richland Ms!!! Loving it!
Utah - $3.48 - 3 Refineries- "special gas" - Refined to 85 Octane for Regular to slow down the pollution (does not work-still cloudy most days)
I saw $2.66 a gallon this morning in Greenville, SC. A barrel of oil is way up today and that will probably put an end to the nice slide in gas prices just in time for the 4th of July travelers. If you're in one of the Greedway states (Michigan, Indiana and Ohio especially), expect a 30 to 40 cent spike very soon.
I will stay where I am at and pay more.
This article was dated when it was written. The price of gasoline fluctuates faster than a squirrel changes direction. Why is it that when the price of a barrel of crude jumps, the price at the pump jumps the same day, but when the price of crude takes a nose dive, it takes at least a couple of weeks for the price at the pump to inch down? It couldn't possibly be price gouging by the altruistic oil companies.
Cuz the price of gas isnt related to the cost of oil used to produce it. Its related to the expected cost of the NEXT gas produced. It take a while for uncertainty and fear to wear off.
jean, I've noticed that also. It's robbery they know they can get away with it. :-(
pGT what about the gas they already produced from the cheaper oil? They go up the same day, they have gas in the storage tanks that was made from the cheaper oil but they still charge the higher price. It's like politicians talking out of both sides of their mouth.
Friday, June 22. Filled up in Macomb, MI. Gas was $3.59 on I-75 and drove south.
Later that day in Knoxville, TN., I filled up and gas was $2.94 on I-75.
Since then, my friend in the area says he found it for $2.88 ... Middlebrook Pike, Knoxville, TN for anyone who doesn't believe it.
Hanover, Michigan at $3.30 a gallon. Still way to expensive. Gas should be $1.75 for the summer and $1.50 in the winter.
while on vacation in Virginia, I enjoyed paying 20 cents less a gallon for gas, it was nice,my state is $3.49 -3.70/gallon
I live in North Dakota and this state is producing more oil than any other state except Texas. There is no shortage of oil in this country. We have no say to how much we pay for gas or any other oil related product. It is a necessity and there is no other alternative. Alternative energy sources will be bought out or held back from the market until we ourselves quit using oil based products for transportation. That IS NOT GOING TO HAPPEN ANY TIME SOON.