Key insights
- Elevated gas prices, exacerbated by geopolitical tensions, are creating significant price differentials across US states. Consumers in states with higher prices may seek savings by crossing borders. While this highlights inflationary pressures on consumers, the overall impact on US equities is slightly negative, as it could lead to decreased discretionary spending in certain regions.
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With gas prices recently pushed above a $4 national average by the ongoing Iran conflict, differences between states are becoming more noticeable. In some cases, prices can swing by 50 cents or more at the pump over just a few miles.
Based on statewide averages, several states currently sit next to much cheaper neighbors—creating potential savings for drivers able and willing to cross the border.
Crossing a state line for cheaper gas can add up—but mostly when you’re already headed that way. Knowing where prices drop can help you plan your fill-up and save.
Many of the largest price gaps show up in Western states—and in some cases exceed $1 per gallon. But savings opportunities appear in parts of the Midwest, South, and Southwest as well.
➤ California ($5.89 per gallon) — Some of the biggest price gaps in the country show up along California’s borders.
➤ Washington ($5.36 per gallon) — Head east into Idaho, and prices at the pump are $1.09 cheaper ($4.27).
➤ Nevada ($4.94 per gallon) — Cheaper options are available in more than one direction.
➤ Arizona ($4.70 per gallon) — Nearby states offer meaningfully lower prices, especially to the east.
➤ Oregon ($4.96 per gallon) — Crossing into Idaho can drop prices 69 cents ($4.27)
➤ Illinois ($4.25 per gallon) — Drivers near multiple borders can find significantly lower prices.
➤ Colorado ($3.85 per gallon) — Prices here aren’t especially high, but nearby states are still significantly cheaper.
➤ Florida ($4.22 per gallon) — Crossing into Georgia can save you 54 cents per gallon ($3.68).
➤ New Mexico ($3.84 per gallon) — Though already below $4 here, it's not the lowest price in the region: Oklahoma is 57 cents cheaper ($3.27).
➤ Idaho ($4.27 per gallon) — Prices are already much lower than on the West Coast, but Montana still comes in 53 cents cheaper ($3.74).
➤ Texas ($3.77 per gallon) — Head north into Oklahoma, and prices drop by 50 cents ($3.27).
These comparisons are based on statewide averages, so prices near specific border crossings can vary—sometimes narrowing or widening the gap. For a closer look at what drivers may actually find, AAA’s county-level data can help pinpoint prices in your area.
Saving money at the pump can feel like an easy win—but the price on the sign isn’t the only factor to consider. How far you have to drive, and whether you were heading that way anyway, can make a big difference in whether those savings actually pay off.
To keep the math simple, assume a 15-gallon fill-up and a car that gets about 25 miles per gallon. If gas is 50 cents cheaper in a nearby state, filling up there would save about $7.50. If the price difference approaches $1, the savings jump to $15 or more.
But distance matters, and even a short detour adds cost. A 5-mile trip to the state line means a 10-mile round trip. In a 25-mpg car, that would use about 0.4 gallons of gas—costing roughly $1.60 at $4 per gallon (more if gas is higher, less if it’s lower). That will start to chip away at your $7.50 to $15 in savings.
That’s why these price gaps are most helpful when you’re already headed toward a state line—whether it’s part of your commute, you’re running an errand, or you’re on a multi-state road trip. In those cases, timing your fill-up before—or after—you enter a new state can make a noticeable difference in your gas expenses without requiring extra driving.
The variance in gas prices from state to state is largely due to differences in taxes and fees. Some states impose significantly higher gasoline taxes than others, and those added costs show up directly in what drivers pay at the pump—helping create sharp price gaps across state lines.
Geography and regulations also play a role. States closer to major refineries or pipelines often have lower transportation costs, while more isolated areas can face tighter supply. In some cases, environmental rules add to the gap. For example, California’s requirement for a cleaner-burning fuel blend contributes to its consistently higher prices.
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