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California is the only state where average gasoline prices are more than $6 per gallon, and there are five states where the average price is around $4.50, the lowest in the U.S.
Nineteen states have average gasoline prices of more than $5 per gallon, including California, which tops the list at $6.42 a gallon, according to a report from the American Automobile Association.
On the other coast, Georgia has the lowest average gas price—$4.49 a gallon, according to AAA’s latest report dated June 17.
California is the only state with prices above $6 per gallon. The states with gas prices above $5 for a gallon of regular are:
Nevada – $5.67
Alaska – $5.60
Washington – $5.56
Hawaii – $5.55
Oregon – $5.54
Illinois – $5.53
Arizona – $5.39
Michigan – $5.19
Indiana – $5.17
Idaho – $5.17
Utah – $5.11
Maine – $5.09
Vermont – $5.05
Pennsylvania – $5.05
New York – $5.03
Massachusetts – $5.03
New Jersey – $5.02
Ohio – $5.01
Besides Georgia, four other states—Mississippi, Arkansas, Louisiana and South Carolina—are selling gas at around $4.50 a gallon, the lowest in the nation.
U.S. gas prices continue to soar due to a variety of factors. Experts say the two big ones are the war in Ukraine, which has interrupted petroleum supplies from Russia, and rising domestic consumption as the pandemic wanes and summer vacations begin.
When gas prices rise, they can be a drag on the economy—impacting everything from consumer spending to the price of airline tickets to hiring practices, according to Investopedia. Gas is an important input for transportation, which not only impacts drivers but also businesses that rely on logistics and transportation chains around the globe.
Crude oil prices make up 60% of a gallon of gas, followed by refining (17%), distribution and marketing (11%) and taxes (12%), according to the U.S. Energy Information Administration. A number of states instituted gas tax holidays for short periods this spring.
The White House this past week sent a letter to the major U.S. oil refiners asking them to ramp up supply, saying they are taking advantage of the war in Ukraine to make "historically high" profit margins, several news outlets reported.
The Biden administration also is considering whether the federal government could send rebate cards to millions of drivers to help them pay for gas, but that might not be possible due to chip shortages, according to a Washington Post report. Also, the cards could be used for things other than gas purchases, and Congress probably would have to approve the expenditure, the Post said.
Regular unleaded gas was chosen as the type of fuel studied by AAA because it is the most popular. For more information from the most recent AAA report click here.
Jean Dimeo is managing editor of Route Fifty.