Drive from Houston to Los Angeles and you’ll watch the price on the gas station signs climb by more than two dollars a gallon. It’s the same fuel, more or less, from the same global oil market. So why the gap? The U.S. Energy Information Administration (EIA) tracks exactly what goes into the price of a gallon, and the answer comes down to a handful of things you can actually name.
The gap, in numbers
Here is what a gallon of regular cost in EIA’s weekly survey for the week of September 28, 2026:
| Area | Regular, per gallon | 15-gallon fill-up |
|---|---|---|
| California | $6.19 | $92.84 |
| Washington | $5.45 | $81.80 |
| U.S. average | $4.47 | $66.98 |
| Florida | $4.28 | $64.23 |
| Texas | $3.84 | $57.62 |
That’s a $35 difference on a single tank between California and Texas. Our gas price pages update every week, so check there for the current figures in your state or city.
What goes into a gallon
EIA breaks the price of a gallon of regular into four parts. For 2025, when the national average was $3.10, the split looked like this:
- Crude oil: 51.4%. The biggest piece, and the one that moves the whole country’s prices up or down together.
- Distribution and marketing: 17.8%. Getting fuel from the refinery to the station, plus the station’s own costs and profit.
- Refining: 16.6%. Turning crude oil into gasoline.
- Taxes: 14.3%. Federal, state and sometimes local taxes.
Crude oil is priced on a world market, so it explains why prices rise and fall everywhere at once. It doesn’t explain why one state costs 60% more than another. The other three parts do.
1. Taxes
The federal gasoline tax is 18.4 cents a gallon everywhere. State taxes vary a lot: EIA puts the average state gasoline tax at about 33.6 cents a gallon as of January 2026, and some states add sales taxes or other fees on top. A difference of 30 or 40 cents between two states can come from taxes alone.
2. Special fuel blends
Some states and cities require cleaner-burning gasoline to cut air pollution, especially in summer. California’s blend is the strictest, and only a limited number of refineries make it. When fewer refineries can supply a market, an outage at one of them can push prices up quickly, because there isn’t an easy way to bring in replacement fuel.
3. Distance from refineries and pipelines
The Gulf Coast has the country’s largest concentration of refineries, which is a big reason Texas and its neighbors usually see some of the lowest prices. Places far from refineries, or not well connected to the main pipelines, pay more to move fuel by tanker, barge or truck. The West Coast is largely cut off from the Gulf Coast pipeline network, which is part of why California, Washington and Oregon regularly sit near the top.
4. Local costs and competition
Station rent, wages, credit-card fees and the number of competing stations nearby all affect the final price. That’s why two stations a mile apart can differ by 20 cents, and why prices along a highway exit are often higher than in town.
It differs by city, too
EIA also reports prices for ten large metro areas. Same week, September 28, 2026:
| City | Regular, per gallon | Four weeks earlier |
|---|---|---|
| San Francisco | $6.27 | $5.47 |
| Los Angeles | $6.17 | $5.46 |
| Seattle | $5.68 | $5.37 |
| Chicago | $4.76 | $4.35 |
| New York City | $4.38 | $4.03 |
| Boston | $4.34 | $4.04 |
| Cleveland | $4.33 | $4.13 |
| Miami | $4.30 | $3.85 |
| Denver | $4.03 | $4.43 |
| Houston | $3.85 | $3.55 |
Two things stand out. First, the West Coast cities sit far above the rest. Second, prices don’t always move together: most cities rose over those four weeks, but Denver fell by about 40 cents. Regional supply, like a refinery restarting after maintenance, can push one market the opposite way from the rest of the country.
Why prices change from week to week
- Crude oil prices. The biggest single driver, set by global supply and demand.
- Seasons. Demand usually rises in spring and summer driving season, and summer-grade gasoline costs more to make than winter-grade.
- Refinery problems. A fire, an outage or planned maintenance can tighten supply in one region quickly.
- Hurricanes. Storms on the Gulf Coast can disrupt refineries and pipelines that supply much of the country.
What this means for a real budget
Example: same commute, two states
Kevin commutes 40 miles a day near Sacramento in a car that gets 25 miles per gallon. He drives about 1,000 miles a month, so he uses about 40 gallons. At the late-September California average of $6.19, that’s about $248 a month. His cousin Tasha drives the same distance in San Antonio; at the Texas average of $3.84, she spends about $154. Same miles, about $94 a month apart, or more than $1,100 a year.
Estimate your own yearly fuel cost
The math is simple: miles per year ÷ miles per gallon × price per gallon. At 12,000 miles a year and 25 mpg, you use 480 gallons. At the late-September U.S. average of $4.47, that’s about $2,143 a year. Each 10-cent change in the price moves that by $48. If you’re choosing between two cars, the same formula shows what better fuel economy is worth to you.
Is it worth driving somewhere cheaper?
Example
Say Ryan lives near a state line, and gas is 40 cents a gallon cheaper 15 miles away. Filling a 15-gallon tank there saves $6. But the 30-mile round trip burns about 1.2 gallons in his 25-mpg car, worth about $5 at those prices, plus half an hour. He comes out about a dollar ahead. If he’s already passing through for another reason, it’s a clear win; as a special trip, it isn’t.
Where the gas tax goes
The federal 18.4-cent tax mostly goes into the Highway Trust Fund, which helps pay for highways and transit. State gas taxes typically fund roads and bridges too. So part of the gap you see between states reflects different choices about how to pay for roads, not just different fuel costs.
What you can actually control
- Compare stations, not just states. Price apps and your map app’s gas layer make it easy to find a cheaper station on your route. Driving 10 miles out of your way to save 10 cents usually isn’t worth it.
- Pay attention to cash vs. credit. Some stations charge less for cash or debit. On a 15-gallon fill-up, a 10-cent difference is $1.50.
- Watch the trend before a road trip. If prices are cheaper where you’re starting, fill up before you cross into a pricier state.
- Drive smoother. Hard acceleration and high highway speeds use more fuel. Keeping tires properly inflated helps too.
- Use the right octane. If your owner’s manual says regular, premium won’t make the car run better, and it costs more per gallon.
Want to know how much a price change matters to you? Our percentage calculator turns “up 38 cents” into a percent, and you can type a question like “15 gallons at 4.47” into our Quick Answers box for the dollar figure.
