Why Texas Average Gas Price Remains Competitive: A Closer Look at the 7 Cheapest States

The energy market has shifted dramatically in recent weeks, with crude oil prices stabilizing around $60 per barrel and gasoline demand easing nationwide. For drivers concerned about holiday travel expenses, this moment brings tangible relief. The national average for regular gasoline now sits at $2.945—a significant drop for the first time since 2021—but some regions are experiencing even steeper declines.

The Texas Advantage in the Current Market

Texas drivers are currently paying approximately $2.501 per gallon, which represents a meaningful discount compared to the national benchmark. This 44-cent advantage reflects the state’s substantial crude oil production capacity and extensive refining infrastructure. As one of America’s leading energy-producing states, Texas has historically maintained lower pump prices due to proximity to major refining operations.

However, Texas isn’t the lowest in the nation. According to recent data, seven states have achieved particularly favorable pricing as supply dynamics and seasonal factors converge.

Understanding the Price Hierarchy

Oklahoma leads the pack at $2.370 per gallon—nearly 58 cents below the national average. The state’s access to Gulf Coast refineries provides a structural advantage for fuel availability.

Colorado follows at $2.478 per gallon, benefiting from regional supply patterns. Louisiana rounds out the pricing spectrum at $2.574 per gallon, anchored by its robust Gulf Coast refining capacity.

Between these benchmarks sit Arkansas ($2.517), Iowa ($2.549), and Mississippi ($2.555), each reflecting different supply-chain dynamics and crude oil accessibility.

What’s Driving These Price Movements

Several forces are converging to create this pricing environment:

Supply dynamics: Weekly gasoline demand has contracted from 8.72 million barrels daily to 8.32 million, while total supply has expanded. This classic supply-demand imbalance pushes prices downward across regions.

Seasonal factors: Winter-blend gasoline is considerably cheaper to manufacture than summer grades, providing additional downward pressure on wholesale costs.

Regional logistics: States with direct access to refining hubs—particularly along the Gulf Coast—enjoy consistent advantages. Texas, Arkansas, Louisiana, and Oklahoma all benefit from this geographic positioning.

The Texas Average Gas Price in Context

When examining the Texas average gas price relative to national trends, the 44-cent savings per gallon translates to meaningful household budgets. For holiday travel spanning 500 miles, this difference could represent $15-20 in fuel savings for typical vehicles.

Yet the seven states listed demonstrate that even deeper discounts are available for travelers who can access these regions. The holiday season makes these price variations particularly consequential, as millions plan road trips during December.

As consumers prepare for year-end travel, monitoring these regional variations becomes strategically important for budget-conscious drivers.