Key Takeaways
Red states tend to have the lowest gasoline prices in the country, as many of them are oil producers or are close enough to major oil-producing and refining resources to enable them to keep average gasoline prices within the state below the national average.
Blue states tend to have the highest average gasoline prices due, in part, to state policies that add hidden fees to the price of gasoline.
California, the state with the highest gasoline prices in the nation, also has the highest state gas tax and hidden fees that result from a cap-and-trade program to lower greenhouse gas emissions, a low-carbon fuel program, underground gas storage fees, and a state and local sales tax — all adding to the price of gasoline.
Washington state, which has the third-highest gasoline price and state gas tax, also enacted a Climate Commitment Act, which is a “cap-and-invest” program that adds a hidden gasoline tax of approximately $0.50 per gallon to its fuel costs.
New Mexico, a blue state, has the 12th lowest gasoline price according to AAA, but the state is capitalizing on its own oil production from the Permian Basin, which has brought added wealth to the state.
According to data from AAA as of November 19, 2025, the 10 states with the lowest statewide average gasoline prices in the United States are all red states. Conversely, states with the highest gasoline prices on average tend to be blue states. Out of the top 10 states with the highest gasoline prices, eight are blue states, with Idaho and Alaska as the only exceptions.
California leads the pack of high-cost gasoline states. Its average gasoline price is $4.64 per gallon, 50% higher than the national average at $3.09 per gallon. It also has the highest state gasoline tax of $0.709 per gallon. Besides the gasoline tax, California has additional hidden fees, including a cap-and-trade program to lower greenhouse gas emissions, a low-carbon fuel program, underground gas storage fees, and a state and local sales tax — all adding to the price of gasoline. While it has oil resources and is the eighth largest producer of oil among the states, its oil production has gone down due to state policies. It has also closed refineries, with two more in the works, which means it will have to import more oil and refined products to meet demand.
Hawaii ranks second highest with an average gasoline price of $4.47 per gallon, 45% above the national average. As a group of islands with no oil resources, it must import its oil, resulting in higher fuel costs as well as higher transportation costs for ocean transport from oil-exporting countries in Africa and South America.
The West Coast states are all in the top five states with the highest average gasoline prices. Washington state ranks third and has an average gasoline price at $4.18 per gallon, 35% higher than the national average, and a state gasoline tax of $0.59 per gallon. Besides its very high gasoline tax — the third highest in the country — the state’s Climate Commitment Act (CCA) adds a hidden gasoline tax of approximately $0.50 per gallon to its fuel costs. The CCA is a “cap and invest” program that charges companies for their carbon emissions.
Oregon ranks fifth, with an average gasoline price of $3.80, 23% higher than the national average, and a state gasoline tax of $0.40 per gallon. Oregon has no oil resources of its own and no refineries, so it must import refined products from other states.
The two outliers are Alaska and Idaho, with average gasoline prices of $3.78 and $3.30, respectively. Alaska’s limited petroleum infrastructure and challenging terrain affect its gasoline price. Its extensive and expensive transportation network to deliver fuel adds to the gasoline price, despite its substantial oil resources. Idaho is not an oil-producing state, and while it has a few refineries, it is dependent on other states for its petroleum products.
The 10 lowest cost gasoline states are all red states, with gasoline prices averaging between $2.56 a gallon in Oklahoma to $2.75 per gallon in Kentucky, all below the national average. Most of these states are clustered around the Permian Basin, where most of the country’s oil is produced and where numerous refineries are located. There is good infrastructure to get the oil and petroleum products from the Permian to the surrounding areas. Besides that, these states do not have onerous policies against oil production and hidden taxes. New Mexico, a blue state, has the 12th lowest gasoline price according to AAA, but the state is capitalizing on its own oil production from the Permian Basin, which has brought added wealth to the state.
As the Washington Examiner points out, using Energy Information Administration data, over the last 25 years, the years with the eight highest average gas prices were in 2021 ($3.008 per gallon), 2024 ($3.304), 2014 ($3.308), 2013 ($3.505), 2023 ($3.519), 2011 ($3.521), 2012 ($3.618), and 2022 ($3.951). All were during the presidencies of Barack Obama and Joe Biden.
The month with the highest record gas price average in the country’s history was June 2022, when the national average price for a gallon of regular gas was $4.929, at which point President Biden continued to speedily release oil from the Strategic Petroleum Reserve (SPR) to lower gasoline prices before the midterm elections that year. The SPR is now at its lowest level in 40 years, and the Trump administration is refilling it as it gets the budget to do so.
Conclusion
Red states tend to have the lowest gasoline prices in the country. Many of them are oil producers or are near major oil-producing and refining resources, enabling them to keep average gasoline prices within the state below the national average. Blue states tend to have the highest average gasoline prices, in part due to state policies that add hidden fees to the price. As these numbers show, anti-energy taxes and restrictions on gasoline production and consumption hurt the wallets of Blue state citizens.
