The States With The most cost effective Gas

Since June, gasoline prices have climbed roughly steadily and at the moment are 35 cents per gallon increased than they had been a 12 months ago. In line with AAA’s each day fuel gauge report, which measures gasoline costs around the nation, gasoline costs have hit daily document highs at the very least once in each of the past six weeks. In Michigan and Ohio, prices rose by 50 cents per gallon up to now yr. As of October 8, there are seven separate states with fuel prices above $four.00 per gallon.

heat exchanger mass productionWhile the worth at the pump has risen in every state in comparison with a year in the past, in some states the worth of fuel has increased at a much slower fee, and plenty of are much closer to $three.50 than to $four.00 per gallon, properly beneath the nationwide common worth. In 10 states the typical value of a gallon of gasoline is $3.60 or much less – 18 cents lower than the nationwide common of $3.78 per gallon.

24/7 Wall St. reviewed gas prices throughout all states. We discovered that certainly one of a very powerful elements that determined worth was a state’s geographic location. Being near refining capability helps minimize out the costs of transporting the gasoline. Consequently, a lot of the states with low gas prices are positioned on or near the Gulf of Mexico, the place the vast majority of the nation’s oil harvesting and refining takes place. 4 of the five states that contact the Gulf of Mexico are among the 10 with the bottom gas prices within the country. Three extra states on this checklist – Arkansas, Tennessee and Georgia – are immediately adjoining to one of many Gulf states.

Gasoline taxes are one other essential situation that impacts fuel costs. Of the 10 states with the lowest prices, eight have among the many 15 lowest taxes per gallon of gas. However the relationship between gas taxes and price is removed from excellent. Alaska has the lowest gas taxes at just eight cents per gallon but the second-highest gas costs. 4 of the 5 states with the bottom fuel taxes, including Alaska, aren’t amongst the 10 with the least costly gasoline.

Whereas national gasoline prices rose over the previous year, they fell by five cents per gallon in the past month. The states on our record have been the driving force in that decline. Fuel prices dropped in 23 states compared to a month ago. Gasoline prices in all 10 states with the most cost effective fuel value have fallen, together with Georgia, where the cost per gallon is down by 24 cents.

Based on AAA’s Each day Fuel Gauge report, 24/7 Wall St. identified the states with the least expensive common price of a gallon of unleaded gasoline as of October 2. AAA additionally supplied the change in common fuel prices by state one week, one month and one 12 months ago. 24/7 Wall St. also examined the variety of refineries and whole refining capability as of January 1, 2012, supplied by the U.S. Vitality Info Administration. From the American Petroleum Institute, we obtained state fuel taxes, which were also as of the beginning of this yr. This contains state fuel excise taxes, in addition to different taxes (together with sales tax). 24/7 Wall St. additionally obtained the relative total cost of residing, and the price of paying for transportation, from The Missouri Financial Research and data Middle for the second quarter of 2012.

These are the 10 states with the cheapest gasoline.

1. South Carolina

>Common gasoline value per gallon: $3.49
>Tax per gallon: Sixteen.8 cents (4th lowest)
>Number of operating refineries: 0

Nowhere is fuel cheaper than in South Carolina, where gas is 28 cents per gallon cheaper than the national common, and three cents cheaper than the second-cheapest state, Mississippi. Contributing to low prices are a few of the bottom fuel taxes in the country; South Carolina fees an excise tax of simply sixteen cents per gallon and different charges and taxes of only zero.8 cents per gallon. On September 15, 2008, prices hit their historic peak in the state, at $four.12. In June, gas prices fell below $3 per gallon.

2. Mississippi

>Common fuel price per gallon: $Three.52
>Tax per gallon: 18.Eight cents (seventh lowest)
>Variety of working refineries: Three

Final 12 months, Mississippi had a median household revenue of just $36,919, making it the poorest state within the nation by that measure. Though the state’s economic system is suffering, there has only been a 25 cents per gallon enhance in Mississippi’s fuel prices over the past 12 months, in contrast a rise of 36 cents nationally. The state at the moment expenses simply 18.8 cents in state taxes per gallon of gas, less than all however six states. Prices also were kept down by a close proximity to the nation’s largest oil refiners, Louisiana and Texas.

Three. Alabama

>Common fuel value per gallon: $Three.53
>Tax per gallon: 20.9 cents (14th lowest)
>Variety of working refineries: Three

One yr ago, gas cost $3.30 a gallon in the state, compared to an average of $3.Forty two nationwide. At that time, fuel costs in 12 states have been cheaper than in Alabama. Since then, the state’s prices have risen by solely 24 cents per gallon compared to a nationwide average enhance of 36 cents per gallon, making gas in the state far cheaper relative to the rest of the United States. The state helps keep costs low for drivers by limiting fuel taxes. The state’s excise tax of sixteen cents a gallon is among the bottom within the county.

4. Tennessee

>Regular fuel worth per gallon: $3.Fifty three
>Tax per gallon: 21.Four cents (fifteenth lowest)
>Variety of working refineries: 1

As of the second quarter of this year, no state was cheaper to reside in than Tennessee. One major cause for the state’s low relative price of dwelling was its low transportation costs, regardless of starting 2012 with four consecutive months of fuel worth increases. Though the state has just one refinery, the value of fuel is 24 cents per gallon below the nationwide average price. Previously month, gas prices in Tennessee have fallen by 12 cents a gallon, certainly one of the most important decreases in the nation.

5. Texas

>Common fuel price per gallon: $3.Fifty four
>Tax per gallon: 20 cents (tied for eleventh lowest)
>Variety of working refineries: 26

Texas is the nation’s largest oil refiner, processing nearly 4.Sixty six million barrels per day – greater than a quarter of the nation’s output – in its 26 working refineries. Like Louisiana, the state further helps keep fuel prices low by not charging any state taxes other than a 20-cent excise tax. Two of the largest public corporations in the nation, Exxon Mobil Corp. (NYSE: XOM) and Phillips 66 (NYSE: PSX), are Texas-primarily based oil firms.

6. Louisiana

>Common gas worth per gallon: $3.57
>Tax per gallon: 20 cents (tied for 11th lowest)
>Number of working refineries: 18

Solely Texas refines more oil into gasoline than Louisiana, which has 18 working refineries processing practically three.2 million barrels per calendar day. The abundance of regionally processed gasoline and the overall absence of any state gas taxes except for an excise tax make trips to the pump highly inexpensive. The state can be residence to the Louisiana Offshore Oil Port, which, in keeping with the EIA, is the nation’s solely port for offloading deep draft oil tankers.

7. Missouri

>Regular gas price per gallon: $3.58
>Tax per gallon: 17.Three cents (sixth lowest)
>Number of operating refineries: 0

Although one 12 months ago Missouri had the most cost effective gasoline in the U.S., prior to now year the worth of gasoline has risen by forty five cents per gallon – more than in every other state. Despite the absence of any in-state refineries, Missouri has a few of the nation’s lowest gasoline taxes, allowing gas to be bought at comparatively low prices. Among the state’s metropolitan areas, St. Louis has the most cost effective fuel at simply $three.Forty nine per gallon.

8. Arkansas

>Regular fuel value per gallon: $3.Fifty eight
>Tax per gallon: 21.8 cents (16th lowest)
>Number of working refineries: 2

Arkansas has access to locally refined gasoline. It has two refineries of its own, and it borders Louisiana and Texas, the 2 largest oil refiners in the nation as measured by barrels per day. Having numerous refineries close by helps decrease the worth of gas for Arkansas drivers, who presently pay 18 cents much less per gallon than the national average of $three.78 a gallon. Arkansas additionally fees just 0.Three cents in other taxes per gallon in excise taxes.

9. Georgia

>Common gas price per gallon: $3.Fifty eight
>Tax per gallon: 28.6 cents (twentieth highest)
>Variety of working refineries: Zero

Georgia’s excise tax of 7.5 cents per gallon of gas is lower than any state except for Florida’s. But with 21.1 cents per gallon in different charges and taxes, Georgians really pay more in gas taxes than residents of 30 other states. High taxes probably contributed to the state’s relatively greater transportation prices midyear – essentially the most costly amongst these states with the bottom gas costs. The good news for drivers, nevertheless, is that the worth of gas has fallen by 24 cents per gallon over the previous month, more than in every other state.

10. Virginia

>Common gas value per gallon: $Three.60
>Tax per gallon: 20.1 cents (13th lowest)
>Variety of working refineries: Zero

Within the second quarter of 2012, the relative cost of transportation in Virginia was among the many Bina country’s lowest. Low gasoline costs are doubtless one cause for this. Virginia can also be one of the wealthiest states in the country, with a median household income of $61,882 as of final 12 months. Presently, Virginia charges 20.1 cents per gallon in complete taxes and charges – more than 10 cents per gallon beneath the nationwide average and inline with different states where gasoline is inexpensive

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