U.S. gas prices are at an all time high. The average price of a gallon of regular gasoline now stands at $4.32, up from less than $3.50 one month ago, as the surge in fuel prices shows few signs of slowing.
The price spike is due to several factors. Most notably, the Russian invasion of Ukraine is leading to reduced supply of oil and gas, as many would-be buyers are reducing consumption of Russian oil – including the U.S., which imposed a ban on Russian oil imports. Russia is traditionally the third largest oil supplier in the world, accounting for 11% of global production. Here is a look at the 15 countries that control the world’s oil.
Even before the outbreak of war in Eastern Europe, fuel prices were on the rise. The ongoing reopening of the U.S. economy has contributed to rising demand for gas – and rising prices in turn have fueled broader inflation concerns. Meanwhile, domestic supply of fuel has been limited, as oil companies have cut investments in new wells in recent years to improve profitability.
While the average price of gas is at an all time high, there are parts of the country where gas prices remain relatively low, and motorists are paying far less than most other Americans. Using fuel price data from AAA, the American Automobile Association, 24/7 Wall St. identified the metropolitan areas with the lowest gas prices. Metro areas are ranked by the average price of a gallon of regular gasoline on March 10, 2022. In the case of a tie, the metro area where gas prices are rising slowest ranked higher.
Among the metro areas on this list, gas prices range anywhere from $3.95 a gallon to $3.72 a gallon. Most of the cities on this list are in the Midwest, including six in Iowa alone.
The total price motorists pay at the pump is the product of several factors, including the price of crude oil – largely determined by global supply and demand – and taxes. The U.S. government levies a gasoline tax of 18.4 cents per gallon, while states are free to set their own gas tax rate. State gas taxes and fees average about 30 cents per gallon. Here is a look at the states with the highest gas taxes.