This Is How Gas Prices Are Determined In Every State

Wondering why your tank of gas costs what it does? We can help.

By Elizabeth Blackstock March 10, 2022 1:20 pm EST

STEFANI REYNOLDS/AFP/Getty Images

With gas prices skyrocketing around the world and hitting record-breaking highs in the United States, you wouldn't be alone if you were wondering how, exactly, prices are set where you live. Especially if you're filling up your tank with $7 per gallon gasoline, wondering why people out in Texas are complaining about their $4.50 per gallon prices.

While there are a quite a few people in this country that firmly believe prices are raised or lowered based on the President's daily whims, it's more complicated than that. The overall price is generally dictated by the economic laws of supply and demand, which puts a price point on a barrel of crude oil. In today's world, where our oil supply has been disturbed by ongoing conflicts, demand for oil is outweighing supply, which makes each gallon of gasoline you purchase more expensive.

But the economics of state-by-state changes can be a little more obscure if you aren't familiar with all the politics that go into determining the price of gasoline. We're talking taxes, refining costs, regional concerns, distribution, and marketing — all of which vary on a state-by-state level.

According to the U.S. Energy Information Administration, roughly 43 percent of the cost of a gallon of gas is the crude oil itself. Another 22 percent comes from federal and state tax, 25 percent goes to refining costs, and 10 percent to distribution and marketing. Those numbers vary state by state as well.

Today, we're going to walk you through all those external factors that add up at the pump in your state.

Alabama

Doug Benc/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.28 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.29 per gallon

Alaska

U.S. Fish and Wildlife Service/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.0895 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.0895 per gallon

Arizona

Christian Petersen/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.19 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.27 per gallon

Arkansas

Wesley Hitt/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.248 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.288 per gallon

California

Mario Tama/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.533 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.68 per gallon
  
  One study showed that Californians were also paying the following fees when filling up the tank:
  - Sales Tax: $0.10 per gallon
  - Low Carbon Gas Program Fee: $0.22 per gallon
  - Greenhouse Gas Program Fee: $0.15 per gallon
  - Underground Tank Storage Fee: $0.02 per gallon

Colorado

John Moore/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes:$0.2325 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.20625 per gallon
  
  Extra sales tax is applied in the city of Colorado Springs.

Connecticut

John Moore/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.25 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.465 per gallon
  
  Additional fees:
  - Prices subject to 8.1 state sales tax
  - Petroleum Gross Receipts Earning Tax: $0.27

Delaware

Jeff Fusco/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.23 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.22 per gallon

District of Columbia

Andy Dunaway/USAF/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.235 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.235 per gallon

Florida

Mike Ehrmann/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.34396 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.35271 per gallon
  
  Additional taxes and fees:
  - Subject to local tax up to 12 cents

Georgia

Elijah Nouvelage/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.279 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.313 per gallon
  
  Additional taxes and fees:
  - Subject to local sales tax

Hawaii

Mike Ehrmann/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.16 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.16 per gallon
  
  Additional taxes and fees:
  - Subject to county tax of 8.8 to 18 cents
  - Subject to sales tax

Idaho

Jeff T. Green/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.33 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.33 per gallon

Illinois

KAMIL KRZACZYNSKI / AFP/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.391 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.466 per gallon

Indiana

Jonathan Ferrey/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.30 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.49 per gallon
  
  Additional taxes and fees:
  - Subject to seven percent sales tax

Iowa

ALEX EDELMAN/AFP/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.305 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.325 per gallon

Kansas

Bert Hoyt/Three Lions/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.2403 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.2604 per gallon

Kentucky

Scott Olson/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.26 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.23 per gallon

Louisiana

Mario Tama/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.20125 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.20125 per gallon

Maine

Maddie Meyer/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.31404 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.31404 per gallon

Maryland

Mark Wilson/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.368905 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.375405 per gallon

Massachusetts

Maddie Meyer/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.24 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.24 per gallon

Michigan

Spencer Platt/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.263 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.263 per gallon
  
  Additional taxes and fees:
  - Subject to six percent sales tax

Minnesota

STEPHEN MATUREN / AFP/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.286 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.286 per gallon

Mississippi

RORY DOYLE/AFP/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.184 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.184 per gallon

Missouri

Ronald Martinez/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.1742 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.1742 per gallon

Montana

Chip Somodevilla/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.3275 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.302 per gallon

Nebraska

Spencer Platt/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.306 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.296 per gallon

Nevada

Robert Mora/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.23805 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.2775 per gallon
  
  Additional taxes and fees:
  - Subject to additional local taxes

New Hampshire

JOSEPH PREZIOSO/AFP/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.23835 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.23825 per gallon

New Jersey

Eduardo Munoz Alvarez/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.414 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.485 per gallon

New Mexico

Joe Raedle/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.18875 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.22875 per gallon

New York

Spencer Platt/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.4045 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.3865 per gallon
  
  Additional taxes and fees:
  - Subject to sales tax to a cap of $2.00 per gallon
  - Subject to local sales tax

North Carolina

Craig Jones/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.3635 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.3635 per gallon

North Dakota

Daniel Barry/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.23025 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.23025 per gallon

Ohio

J.D. Pooley/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.385 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.47 per gallon

Oklahoma

Drew Angerer/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.20 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.20 per gallon

Oregon

Justin Sullivan/Getty Images

Gasoline

Federal Taxes: $0.184 per gallon
State Taxes: $0.36 per gallon

Diesel
- Federal Taxes: $0.244 per gallon
- State Taxes: $0.36 per gallon
  
  Additional taxes and fees:
  - Subject to additional fees of one to five cents