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This year we’ve all had the same burning question: When will gas prices go down? In 2020, gas prices hit a generational low at just $1.91 per gallon. Fast-forward to June 2022, and gas hit almost $6 per gallon — a $4 per gallon increase in just two years.
Now we’re seeing relief, and some parts of the country will reach gas prices at under $3. Dozens of states are already seeing gas prices under $4. Is your state one of them? We dive into who in the country is seeing the lowest gas costs.
Why are gas prices going down?
Long story short — people are cutting down on driving to save money, so there is less demand for gas. Everywhere you look, price tags are going up. In June, inflation hit the highest levels in 40 years, with consumer prices going up 9.1%. To save money, people have been cutting down on expenses, including driving.
Cheaper gas means oil prices are falling. Crude oil barrels went under $90 a barrel for the first time since the Ukraine-Russia conflict. Statista reported that in March 2022, oil barrel prices reached a 15-year high at $120 a barrel. In only five months, oil prices have gone down by $30 a barrel. So less demand and cheaper supply mean cheaper gas for us.
Which states have gas prices under $4 per gallon?
- Courtesy of Dreamstime
People in the South and Midwest get the most relief at the pump, with average gas prices under $4. Here are the states with gas prices under $4 as of Aug. 11, 2022:
- South Carolina – $3.54 per gallon
- Arkansas – $3.54 per gallon
- Georgia – $3.56 per gallon
- Oklahoma – $3.56 per gallon
- Tennessee – $3.55 per gallon
- Mississippi – $3.56 per gallon
- Alabama – $3.60 per gallon
- Kentucky – $3.60 per gallon
- Missouri – $3.60 per gallon
- Kansas – $3.59 per gallon
- Iowa – $3.61 per gallon
- Louisiana – $3.61 per gallon
- Wisconsin – $3.67 per gallon
- Ohio – $3.66 per gallon
- North Carolina – $3.74 per gallon
- Florida – $3.70 per gallon
- New Mexico – $3.75 per gallon
- Virginia – $3.80 per gallon
- Nebraska – $3.80 per gallon
- Delaware – $3.86 per gallon
- Indiana – $3.89 per gallon
TIP: If you live in one of these states, you could use our tips to save on gas to bump that per-gallon cost below $3. (Or even if you don’t live in those states, you’ll want the savings.)
Which states could see gas prices under $3 per gallon?
Summer is peak driving season, and now that it’s coming to an end, the demand for gas continues to drop.
For some of you, experts say some states could see gas prices as low as $2.99 per gallon. Here are states that will most likely reach gas costs at under $3 per gallon by the end of August:
- South Carolina
Will gas prices go up again?
Sure, gas is going down … for now. But is this just temporary relief? Maybe. Hurricane season is here and lasts through November. If storms hit essential areas with many oil refineries, like Louisiana or Houston, gas prices could skyrocket back to over $5 per gallon.
In 2021, Hurricane Ida caused gas prices to jump 15%. However, a hurricane as catastrophic as 2017’s Hurricane Harvey caused gas prices to go up 40%.
According to the National Oceanic and Atmospheric Association, 2022 might have 14 to 21 major storms and six to 10 hurricanes this season. The NOAA predicts an “above-normal” hurricane season, meaning some pretty intense storms could very well knock the price of gas back up.
Which states have the highest gas prices?
Some states still feel a pinch in their wallet when they fill their tanks. Taxes and a lack of refineries contribute to higher gas prices in different parts of the country.
These four states have an average gas price that’s still $5 and over per gallon:
- Alaska – $4.95 per gallon
- California – $5.38 per gallon
- Nevada – $4.94 per gallon
- Hawaii – $5.39 per gallon
TIP: If you live in these states, you’ll want to see how many different ways you can save at the pump with our money-saving gas hacks.