BUSINESS
In which US states is gas the cheapest entering December 2023?
As the holiday season begins, millions of families will be traveling by car. We have analyzed gas prices across different states to help you plan your trip.
Gas prices have decreased significantly since September, providing some relief to consumers. However, this relief is expected to be temporary, as the US Energy Information Administration predicts prices will rise again in 2024. Despite this, those traveling during the holiday season can expect to pay less at the pump than they will early next year, as prices are currently at their lowest level in almost a year.
The American Automobile Association (AAA) tracks the daily changes in gas prices at both the national and state levels. On Tuesday, 5 December, the national averages are as follows:
- Regular: $3.229
- Mid-Grade: $3.693
- Premium: $4.026
- Diesel: $4.182.
Cheapest gas in the US
According to AAA, the cheapest gas can be found in Texas, which has a significant petroleum producer and refiner, which is unsurprising. In 2022, the EIA reported that 42.5 percent of all crude oil produced in the US came from Texas. The next closest state was New Mexico, representing 13.3 percent of the country’s total production.
Lowest prices for regular gasoline
- Texas: $2.72
- Oklahoma: $2.74
- Mississippi: $2.74
- Missouri: $2.78
- Louisiana: $2.78
- Arkansas: $2.80
- Kansas: $2.85
- Alabama: $2.86
- Iowa: $2.87
- Tennessee: $2.88
In terms of mid-grade fuel prices, the ten states with the lowest prices shift a bit:
- Oklahoma: $3.03
- Missouri: $3.12
- Mississippi: $3.12
- Texas: $3.14
- Kansas: $3.15
- Arkansas: $3.18
- Louisiana: $3.20
- Iowa: $3.21
- Nebraska: $3.21
- Alabama: $3.28
For premium grade fuel, the lowest prices are found in:
- Oklahoma: $3.32
- Missouri: $3.44
- Kansas: $3.47
- Texas: $3.48
- Utah: $3.48
- Mississippi: $3.51
- Arkansas: $3.56
- Louisiana: $3.57
- Colorado: $3.60
- Nebraska: $3.63
Prices are expected to rise in 2024
Gas prices reached a record high in 2022, but in 2023 they came down. However, the EIA has forecasted that prices at the pump will rise again next year. In October, the federal agency predicted that the average price per gallon for November and December would be around $3.40. However, the average for 2024 is expected to increase to $3.60.
Lower demand to drive increase
According to the EIA, gasoline demand in the United States is expected to drop to levels lower than those recorded before the pandemic on a per capita basis. The decrease in demand can be attributed to several factors, including an increase in remote work, improvements in the fuel efficiency of the US vehicle fleet, high gasoline prices, and persistently high inflation. As a result of lower demand for gasoline and an increased refining capacity, US gasoline inventories increased by four percent from early September to mid-October.