Why are Gas Prices SO DIFFERENT ACOSS The Country?

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Patrick de Haan, Head of Petroleum Analysis at Gasbuddy, Said Gas Taxes and Police Can Vary by State, and that Can Lead to Different at the Pump Across the Country.

“One of the Biggest Shifts from State to State is Gasoline Taxes, Diesel Taxes,” De Haan Said. “One State May Charge More Gasoline Tax than Another. … Illinois has Among the Highest Gasoline Taxes in the Region – One of the Highest in the Country.”

The Illinois Fuel Tax Rate motor Increasses annually on July 1 and is based on the increes in the consumer price index. This year, the tax rate rose by 1.3 cents a gallon, with the gas tax rising from $ 0.470 a gallon to $ 0.483 a gallon. Diesel CLIMBED FROM $ 0.545 A Gallon to $ 0.558.

SINCE JULY 2017, The Motor Fuel Tax on Gas Has Risen 154%, or $ 0.19 a gallon to it Current $ 0.483, while Diesel Rose 160% over the Same period.

But there are also other taxes for motor fuel Such as a sales tax and Environmental Impact Fees.

The Tax Foundation Reported in 2024 that the Total Tax on Gasoline Paid by Illinois Consumers was $ 0.665 a Gallon, The Second Highest in the Nation Behind California at $ 0.681 a Gallon.

De Haan Said State Police Can Influenza Gas Price as Well. For Example, California’s Cap-And-Trade Program Requires Companies to Reduce Their Emissions but Allows to Bud Allowances from the State or Other Business.

“In states where regulations are more significant – california being an example – thies prices are higher, Because IT’S more expensive to be business in that state versus a state texas, which has fewer guardils and regulation, (Which) Keeps Lower,” Keeps Lower Haan Said.

He Also Said Regional Differences Can Affect Price, Citting the Petroleum Administration for Defense Districts. Created by the Federal Government During World War II, IT Split the Country Into Five Regions to Monitor Supply and Demand.

“When there there is a refinery outage in one of these regions, or one of these padds, depression on the level of Connectedness to Other Regions, there can be impact (on price),” he said.

“So Taxes, Rules and Regulation and THEN REFINERY STATUS, SUPPLY AND DEMAND REGIONALLY, ALL OF THOSE GO INTO WHY GAS PRICES CAN BE DRASTICALY DIFFERENT.”

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