While the national average is now $2.94, the prices consumers pay at the pump can vary dramatically depending on where they live. States like Oklahoma and Texas continue to offer some of the lowest prices in the country, while others, particularly on the West Coast, are still grappling with much higher fuel costs.
The significant price differences highlight the complexities of the U.S. fuel market, where regional factors such as local taxes, transportation costs, and state regulations all play a role in determining what drivers pay. These variations are especially noticeable as consumers in some states enjoy steep drops in fuel prices, while others face ongoing financial strain at the pump.
The Cheapest Gas Prices Are Found in the South and Central U.S.
Oklahoma remains the leader in cheap gas, with the lowest average price in the country at $2.37 per gallon. This represents a nearly 20-cent drop from the previous month, and it reflects a broader trend in the central and southern United States, where prices have continued to fall.
Texas follows with an average of $2.51, while Iowa reports an average of $2.52. These states, along with Arkansas, Mississippi, and Colorado, consistently offer some of the most affordable fuel prices in the nation, making them a relief for drivers looking to save at the pump.
In addition to these states, Missouri, Kentucky, and Wisconsin are also seeing relatively low prices, all hovering around $2.57 to $2.60 per gallon. The ongoing decline in fuel prices in these regions is largely attributed to lower transportation costs and regional supply conditions, which continue to keep prices down in these areas.
The West Coast Struggles with High Prices
While many states are benefiting from lower gas prices, the West Coast remains an area of concern, with Hawaii now surpassing California as the state with the highest gas prices. As of December 2025, the average price in Hawaii has risen to $4.45 per gallon, while California’s average stands at $4.41, down from $4.68 last month. Washington follows with an average of $4.05 per gallon, and Oregon’s prices are slightly lower at $3.66.
The high prices in these states are driven by a combination of factors, including high state taxes, expensive refining costs, and transportation challenges specific to the region. In particular, Hawaii and California’s reliance on imported fuel and complex logistical issues contribute to their elevated prices. For drivers in these states, the financial burden at the pump remains a persistent issue, even as national prices continue to fall.
A National Drop, but Regional Disparities Persist
Nationally, gas prices are trending downward, with the average price for regular gas now at $2.94, down from $3.08 in November 2025. According to data from AAA, this marks the first time in four years that gas prices have fallen below $3. The decrease is not limited to regular gas, as mid-grade and premium fuel prices have also seen reductions. Mid-grade fuel now averages $3.44 per gallon, while premium is priced at $3.80.
Despite the overall decline, the stark differences between states highlight how localized factors continue to affect the cost of fuel. For instance, while consumers in Oklahoma, Texas, and Iowa benefit from lower prices, those in California, Hawaii, and Washington still face much higher costs. These regional discrepancies remain a key feature of the U.S. fuel market, leaving many drivers wondering when, or if, prices will become more uniform across the country. Gas price by state (lowest to highest) :
| State | Gas Price (Per Gallon) |
|---|---|
| Oklahoma | $2.369 |
| Texas | $2.510 |
| Iowa | $2.520 |
| Colorado | $2.524 |
| Arkansas | $2.530 |
| Mississippi | $2.549 |
| Wisconsin | $2.572 |
| Louisiana | $2.578 |
| Missouri | $2.595 |
| Kentucky | $2.596 |
| Kansas | $2.600 |
| Tennessee | $2.609 |
| Alabama | $2.648 |
| South Carolina | $2.660 |
| Wyoming | $2.675 |
| Nebraska | $2.683 |
| North Dakota | $2.690 |
| South Dakota | $2.690 |
| New Mexico | $2.719 |
| Indiana | $2.737 |
| Minnesota | $2.779 |
| Georgia | $2.787 |
| Ohio | $2.792 |
| North Carolina | $2.798 |
| Delaware | $2.832 |
| Virginia | $2.832 |
| West Virginia | $2.843 |
| Florida | $2.860 |
| Maryland | $2.872 |
| Utah | $2.879 |
| Michigan | $2.906 |
| Montana | $2.924 |
| New Hampshire | $2.924 |
| New Jersey | $2.952 |
| Rhode Island | $2.962 |
| Maine | $2.992 |
| Massachusetts | $3.015 |
| Connecticut | $3.041 |
| Idaho | $3.060 |
| Illinois | $3.090 |
| Vermont | $3.108 |
| New York | $3.110 |
| Pennsylvania | $3.172 |
| Arizona | $3.202 |
| Nevada | $3.557 |
| Alaska | $3.635 |
| Oregon | $3.664 |
| Washington | $4.047 |
| California | $4.413 |
| Hawaii | $4.448 |
