The war in Iran has sent gas prices surging, but the impact is being felt differently across the United States.
From the end of February to May 7, the average price of gas per gallon in the U.S. has gone from around $2.92 to $4.56. With the Strait of Hormuz remaining closed, those prices will likely continue to rise.
Recommended Stories
Regional gas prices
California has the most expensive gas at $6.165 per gallon, according to AAA. The rest of the West Coast follows the Golden State with some of the highest prices: Washington’s gas price has increased to $5.76 per gallon, Oregon drivers are now paying $5.35 per gallon, and Nevada’s cost per gallon stands at $5.24. Hawaii is the second-highest in the nation at $5.66, with Alaska also experiencing gas prices increasing to $5.21.
Further east, Illinois sticks out at $5 per gallon, Michigan at $4.78, and Ohio at $4.78.
Beyond those outliers, gas prices are fairly consistent regionally. Most of the Northeast ranges from $4.40 to $4.78 per gallon. The South ranges from $3.99 to $4.17 per gallon, with Florida standing as an outlier at $4.52. The Midwest ranges from $4.09 to $4.52, outside the prior exceptions.
Oklahoma boasts the lowest prices in the country at $3.99.
Why gas prices vary
California has had the highest gas prices in the nation for a while, due to environmental regulations and gas taxes. Drivers in the state must pay a state excise tax, state sales tax, and an underground storage tank fee. California imposes further costs through its Cap-and-Trade Program and Low Carbon Fuel Standard. The state requires a special blend of gasoline that produces fewer emissions but is more expensive to produce.
A major factor affecting all western states west of the Rocky Mountains is the geographical barrier imposed by the mountain chain. No major pipelines go through the mountains, making transportation much more difficult. Most major refineries in the U.S. are located along the Gulf Coast.
Alaska and Hawaii also suffer a similar logistical problem, as they import a significant amount of fuel from overseas suppliers, such as South Korea and India. The associated costs are felt at the pump.
The higher outliers across the rest of the country, such as Indiana and Michigan, are typically associated with Democratic rule, with blue legislatures levying higher environmental and state taxes than their neighbors.
With most of the U.S.’s refining capacity located along the Gulf Coast, prices are predictably much lower in the South. The lowest costs in the country are concentrated in the location closest to the refineries.
One surprising exception is Florida, a Red bastion located along the Gulf Coast. This is largely due to a phenomenon known as “price cycling” from a reliance on sea imports.
Patrick De Haan, head of petroleum analysis at GasBuddy, told Newsweek that Florida suffers the most from price cycling, in which gas prices spike one day and then slowly fall the next few days before another sharp increase.
He explained that Florida’s reliance on sea imports means oil tanker companies have the easier option of redirecting to other countries where fuel prices are higher.
DOT SAYS AIRLINES PAID 56% MORE FOR FUEL IN MARCH THAN BEFORE IRAN WAR
“When refiners have the option to sell gasoline or diesel overseas at higher prices, local buyers have to compete with those global buyers,” De Haan said. “That tends to pull prices in those regions closer to international levels.”
A reliance on oil tankers also leaves it vulnerable to price shocks during geopolitical events, such as the Strait of Hormuz blockade.
