These US States Saw The Biggest Gas Price Increases In 2025

Very few things get cheaper as time goes on, which often leaves us feeling poorer and poorer, even if we get a bump up in wages every now and again. Gas prices, for instance, went pretty wild as the U.S. bounced back from COVID in mid-2022, and while prices have dropped since then, recent data suggests that the price is trending upward again, in certain areas at least.

Where you live can have a huge impact on how much you feel these changes, and that's just within the U.S., which is far from one of the cheapest countries for gas in the world. Not only are some states much more expensive than others, but some have seen much bigger price increases in the last 12 months than others, too. The hardest-hit state is Oregon, where prices have swelled by 7.64% in the last year — an increase that has seen the price for a gallon of regular gas jump from $3.55 to $3.82.

Two other states have seen increases north of 5% year-on-year, while one state now sees regular selling for north of $4.50 a gallon. Here we'll explore the states that have drawn the shortest straws and the cheapest places to buy gas in the U.S., before exploring why prices fluctuate so much the nation over.

Rising gas prices in the US

In addition to Oregon, both Alaska and Idaho had big hikes in gas prices over the last 12 months. Alaska saw prices rise by 7.05%, from $3.48 to $3.72, while in Idaho they climbed by 5.65%, from $3.10 to $3.27. These were the only other two states to see prices climb by over 5%, but Washington was close, with an increase of 4.94%, rising from $3.99 to $4.19.

These stats paint a pretty poor picture of U.S. gas prices, but they're only one side of the coin. Most states have actually seen a drop in prices over the last 12 months, rather than a rise. To be precise, 28 states have seen prices drop, while in 21 they've risen, and in one state — Iowa — they've held steady (at $2.75). The biggest winner has been Colorado, where gas prices have dropped from $2.90 to just $2.65 per gallon year-on-year, a dip of 8.65%.

Another winner is Oklahoma, as not only have prices there dropped by 0.64% in the last 12 months, but it's also the cheapest place in the U.S. to buy your gas, with the average price currently sitting at just $2.50 per gallon. That's over $2 per gallon cheaper than the $4.59 in California, the most expensive place in the country to refuel as of November 2025.

Here's why gas prices fluctuate so much in America

If you live in one of the cheaper states to buy gas, we doubt you're complaining much, but if you're in California or Oregon, it might seem a little unfair to see low averages across the rest of the U.S. while you fork out much more. The reasons for these differences include each state's policies, taxes, and distance to refineries. For example, there are more refineries on the Gulf Coast than on the West Coast, which means higher transport costs in the West. The Rocky Mountains, too, are a factor, restricting the number of pipelines that can come through.

In California specifically, gas is subject to a unique set of taxes and policies, thanks to the state's carbon management program, and a different gas blend being required than you'd find anywhere else. These demands mean more work for suppliers, which affect pricing.

You'll also pay different prices at different gas stations. For example, a gas station in a prime location — such as near a highway exit — may be paying more to rent the land than a small station in the center of town, so prices may be set higher to cover the extra cost. Plus, some suppliers, such as Shell, include additives and cleaning agents to improve their fuel's quality, a practice that will see the cost jump a little compared to companies that don't.

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