Gas prices continue to drop nationwide, but it may not feel like it, especially if you live in a state with particularly high prices and your credit card bill increases as a result.
While the average price of regular unleaded gasoline dropped to $3.472 per gallon on August 5, 2024, the memo does not appear to have reached the following states, where drivers can still expect to pay the most per gallon.
What drives the price?
As long as filling up your car affects your personal finances, it’s good to know that prices aren’t set arbitrarily. According to the U.S. Energy Administration (EIA), these are the four main factors that determine how much you pay at the pump.
1. The cost of crude oil
Nothing plays a bigger role in gasoline prices than the price of crude oil. Whenever U.S. oil production increases, the price of gasoline falls. When production declines, you can expect prices to rise.
2. Taxes
Federal, state and local taxes also affect the retail price of gasoline, and these taxes vary significantly by city and state. If your area of the country has high gasoline taxes, you’re paying those taxes every time you go to the pump.
3. Refining costs
One factor that varies by season is the cost of refining crude oil. Then there’s the issue of additives that can be mixed into gasoline. If you’ve ever noticed that gasoline prices change daily (and even hourly), it’s because of the ever-changing cost of converting crude oil into gasoline.
4. Sales and Marketing
Gas stations are out to make money. For example, gasoline prices rise as demand increases, meaning you can expect higher prices during the summer months and other times of year when more people are on the road. Gas stations in the middle of nowhere, with hardly any competition in sight, can afford to charge a higher price per gallon, while gas stations that have to compete against nearby competitors may have to lower their prices.
Fight against high prices
As you’ve no doubt noticed, there’s an app for everything these days, from getting out of debt to tracking your monthly household budget. Fortunately, there are also plenty of apps to help you save on gas costs. Here are some of the most popular options.
GasGuru
Using data from the Oil Price Information Service (OPIS), Gas Guru shows you where gas prices are lowest in your area. You can even filter by price, the grade of fuel you want, and the distance you want to drive.
Fuelio
Fuelio not only shows you where you can fill up at the cheapest price, it also records your refueling, creates a logbook and helps you keep track of your vehicle costs such as tolls, parking fees and even trips to the garage.
GasBuddy
The most well-known gas station app is GasBuddy. All you have to do is enter your zip code and the gas prices at the gas stations in your area are displayed as if by magic. An app can hardly be that simple.
AAA TripTik Travel Planner
You don’t have to be a AAA member to access the AAA TripTik Travel Planner app. It shows gas stations and prices in your home area and can help you plan a road trip. With more than 85,000 gas stations listed across the U.S., it’s easy to find the cheapest gas no matter where you are.
Even if you can’t control the price of gasoline, you can use technology to minimize your expenses.
Attention: Our top-rated cashback card now has 0% introductory APR until 2025
This credit card isn’t just good – it’s so exceptional that our experts use it personally. It offers a long introductory period with 0% APR, a cash back rate of up to 5%, and all with no annual fee! Click here to read our full review for free and apply in just 2 minutes.
