Top 10 states with the cheapest gas

It seems like just yesterday that experts were forecasting $5 per gallon gas prices by the summer. Well, now we’re the midst of the summer and gas prices are continuing to decline. In fact, gas prices in all but two states have decreased over the past month. Country wide, gas prices have fell over 7 percent since May, with many states headed for prices south of $3 per gallon.

Despite falling gas prices, there is still a great disparity between states. So what accounts for the difference in price amongst the 50 states? The greatest price indicator is location, according to 24/7 Wall St., which just examined the most recent AAA Daily Fuel Gauge Report. The majority of states with the cheapest gas prices are located on or near the Gulf of Mexico, according to the new study.

“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.”

Aside from location, a state’s gasoline tax is a major indicator of its per gallon gasoline price. All but two of the states on 24/7 Wall St.’s list are in the bottom half of states in regard to gasoline taxes. That said, the relationship between the price at the pump and the gasoline tax is a complicated one. For example, Alaska has the lowest gas tax in the nation, but the second-highest gas price.

Here are the top 10 states with the cheapest gas prices:

10. Missouri
- Regular gas price per gallon: $3.23
- Tax per gallon: 17.3 cents (6th lowest)
- Number of operating oil refineries: 0

9. Texas
- Regular gas price per gallon: $3.22
- Tax per gallon: 20 cents (tied for 12th lowest)
- Number of operating oil refineries: 26

8. Virginia
- Regular gas price per gallon: $3.20
- Tax per gallon: 26.1 (27th highest)
- Number of operating oil refineries: 0

7. Georgia
- Regular gas price per gallon: $3.19
- Tax per gallon: 29.4 cents (33rd highest)
- Number of operating oil refineries: 0

6. Arkansas
- Regular gas price per gallon: $3.17
- Tax per gallon: 21.8 cents (16th lowest)
- Number of operating oil refineries: 2

5. Louisiana
- Regular gas price per gallon: $3.16
- Tax per gallon: 20 cents (tied for 12th lowest)
- Number of operating oil refineries: 18

4. Tennessee
- Regular gas price per gallon: $3.08
- Tax per gallon: 21.4 cents (15th lowest)
- Number of operating oil refineries: 1

3. Alabama
- Regular gas price per gallon: $3.07
- Tax per gallon: 20.9 cents (14th lowest)
- Number of operating oil refineries: 3

2. Mississippi
- Regular gas price per gallon: $3.06
- Tax per gallon: 18.8 cents (7th lowest)
- Number of operating oil refineries: 3

1. South Carolina
- Regular gas price per gallon: $2.99
- Tax per gallon: 16.8 cents (4th lowest)
- Number of operating oil refineries: 0

The national average for a gallon of regular unleaded gas is currently $3.33, according to AAA.

Source: 24/7 Wall St.

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