Fuel Pricing & Economics
Q1
What actually determines the price of a gallon of gasoline?
According to the U.S. Energy Information Administration (EIA), the retail pump price consists of four distinct components: (1) Crude Oil (~50–55%): The raw global price of benchmark crude like Brent or West Texas Intermediate; (2) Refining Costs (~20–25%): The cost of converting crude into finished gasoline, including seasonal additives; (3) Distribution & Marketing (~10–12%): Pipeline tariffs, tanker transport, station overhead, and dealer margins; (4) Federal & State Taxes (~12–16%): An 18.4¢ federal excise tax plus state and local fuel levies.
State Differences
Q2
Why do gas prices vary so dramatically between different states?
State price divergence is driven primarily by three factors: State Fuel Excise Taxes (ranging from under 9¢/gal in Alaska to roughly 60¢/gal in California and Pennsylvania), Geographic & Pipeline Proximity (states along the Gulf Coast sit adjacent to major refineries and pipeline hubs, while Hawaii and the Pacific Northwest require ocean tankers), and Environmental Fuel Mandates (specialized summer formulations like California CARB or Chicago Reformulated Gasoline that only a handful of refineries can produce).
State Differences
Q3
Why is gasoline consistently most expensive in California, Washington, and Hawaii?
California requires a proprietary CARB fuel blend that cannot be readily imported from Gulf Coast refineries, levies the highest fuel taxes and cap-and-trade fees in the country, and is geographically isolated west of the Rockies. Hawaii must transport all refined fuels thousands of miles across the Pacific via maritime tankers, and Washington state enforces a clean fuel standard carbon tax.
State Differences
Q4
Why is gasoline so much cheaper in Texas, Mississippi, and the Gulf Coast?
The U.S. Gulf Coast (PADD 3) is the refining capital of North America, housing over 50% of the entire nation's crude distillation capacity. Retail stations in Texas, Louisiana, and Mississippi have minimal transport overhead, direct pipeline access, and low state fuel excise taxes (Texas levies 20¢/gal, Mississippi levies 18¢/gal).
Fuel Grades & Vehicle Care
Q5
What is the real difference between Regular (87), Mid-Grade (89), and Premium (91–93)?
The key distinction is the Octane Rating, which measures the fuel's ability to resist engine knocking or pre-ignition under high cylinder compression. Regular fuel is typically 87 octane, midgrade is 89 octane, and premium is 91 to 93 octane. Higher octane does not contain more energy or horsepower per gallon; it simply withstands higher temperatures and pressures before igniting.
Fuel Grades & Vehicle Care
Q6
Does filling up with Premium gas improve fuel economy in a car designed for Regular?
No. The Federal Trade Commission (FTC) and consumer auto studies consistently confirm that using premium gasoline in a vehicle engineered and calibrated for 87-octane regular delivers no measurable improvement in horsepower, gas mileage, or engine cleanliness. You should only purchase premium if your vehicle owner's manual states "Premium Required".
Diesel & Commercial Fuels
Q7
Why is Diesel fuel often more expensive than Regular gasoline?
Diesel has higher refining production costs due to EPA regulations requiring Ultra-Low Sulfur Diesel (ULSD, maximum 15 ppm sulfur), which necessitates intensive hydrotreating. Furthermore, the federal excise tax on highway diesel is 24.4¢ per gallon (6¢ higher than gasoline's 18.4¢ rate), and diesel competes directly with global home heating oil and commercial trucking demand.
Seasonal Patterns
Q8
What is the difference between Summer Blend and Winter Blend gasoline?
In warm weather, gasoline evaporates rapidly, creating ground-level ozone smog. The EPA mandates that refineries switch to "Summer-Blend" fuel by June 1, which has a lower Reid Vapor Pressure (RVP). Summer blend replaces inexpensive butane with costlier alkylates and aromatics, adding 10¢ to 15¢ per gallon to refining costs. In September, refineries switch back to cheaper "Winter-Blend" fuel, which improves cold-weather engine starts.
Consumer Savings
Q9
What is the cheapest day of the week to buy gas?
Consumer fuel market surveys across the United States show that Monday and Tuesday mornings generally offer the lowest average retail pump prices. Prices tend to climb starting Thursday afternoon and peak on Friday and Saturday as retail stations anticipate heavier weekend road travel and commute demands.
Price Trends & Forecasting
Q10
Are gas prices going up right now? What causes sudden fuel price spikes?
Whether gas prices are going up depends on several interconnected variables: benchmark crude oil prices (which make up over 50% of pump cost), refinery outages or seasonal spring maintenance turnarounds, summer-blend low-volatility fuel transition rules (mandated June 1), and sudden inventory drawdowns. When crude jumps or refineries experience unplanned shutdowns, retail pump prices can surge rapidly within 48 to 72 hours.
Local Benchmarks & Station Finding
Q11
How can I check accurate gas prices near me today without relying on outdated station reports?
Drivers searching for "gas prices near me today" frequently encounter crowd-sourced apps with stale or unverified data. Gas Price Today provides verified statewide statistical benchmarks compiled daily from comprehensive retail surveys covering over 130,000 stations. Local neighborhood pump prices typically track within ±10¢ to 30¢ of the state average, with off-highway stations and warehouse clubs generally pricing below the state median.
Fuel Comparisons & Alternative Energy
Q12
What is the cost of propane gas per gallon compared to gasoline and diesel?
The national retail baseline for residential heating propane is approximately $2.67 per gallon, with commercial autogas LPG averaging roughly $2.85 per gallon. While the per-gallon purchase price of propane is often lower than regular gasoline or diesel, propane contains ~91,500 BTUs per gallon versus 125,000 BTUs for gasoline (73% energy density). To achieve the same energy output as one gallon of gasoline, it requires approximately 1.34 gallons of propane (Gasoline Gallon Equivalent / GGE).
National Benchmarks
Q13
What is the national gas price today and how does it affect local fuel costs?
The national gas price today represents the weighted retail pump price for regular unleaded fuel across all 50 U.S. states and Washington, D.C. While no single driver pays the exact national average at their neighborhood pump, the national figure serves as the macroeconomic anchor for consumer inflation, fleet budgeting, and interstate freight indices.
Fuel Pricing & Economics
Q14
What is the difference between gasoline price today and the price of crude oil?
Crude oil is the raw commodity extracted from the ground and traded by the barrel (42 gallons) on global exchanges like WTI (West Texas Intermediate) and Brent. The retail gasoline price today reflects crude oil PLUS the cost of refinery processing (crack spread), chemical additives, pipeline transportation, dealer marketing margins, and federal/state fuel excise taxes.
Data & Methodology
Q15
How frequently are fuel prices updated on Gas Price Today?
Our state-by-state and national average retail prices are compiled daily from AAA and OPIS nationwide surveys covering more than 130,000 retail stations. Our multi-year historical trend datasets are compiled weekly from the U.S. Energy Information Administration (EIA) Form EIA-878 release every Monday afternoon.
Taxes & Regulation
Q16
What is the federal gasoline tax, and when was it last raised?
The U.S. federal excise tax on gasoline is 18.4 cents per gallon (and 24.4 cents per gallon for highway diesel fuel). The federal tax rate has remained unchanged since October 1, 1993, when it was established under the Omnibus Budget Reconciliation Act of 1993. Revenues flow into the federal Highway Trust Fund.
Have another question or noticed a data discrepancy?
We are committed to absolute data accuracy and transparent public benchmarks. If you have an inquiry about state methodologies or want to suggest an addition, get in touch with our team.
