US Gas Prices Decrease By As Much As 14% — See Where Your State Stacks Up

After a year in which average gas prices reached a high of nearly $5 a gallon, drivers across the U.S. can breathe a little easier. Since March 2022, U.S. gas prices have fallen by 7.2% — and some states have seen even larger decreases.

We looked at the biggest fluctuations in gas prices between March 1, 2022, and March 1, 2023. In addition to highlighting which states saw the biggest decreases (and increases), we’ll also explain how you can utilize credit card rewards to earn cash back at the pump.

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Key findings

• The average U.S. gas price on March 1, 2023, was $3.36 per gallon — down 7.2% from $3.62 a year ago.
• The average gas price per gallon in 2022 was $3.95, reaching a peak in June and July before falling to its lowest price in December.
• The highest average gas prices are in Hawaii ($4.88 per gallon), California ($4.79) and Nevada ($4.27).
• Texas has the lowest average gas price ($2.91 per gallon), below Mississippi ($2.96) and Kentucky ($2.97).
• Average gas prices jumped the most between March 2022 and March 2023 in Colorado (19.0%), Utah (7.3%) and Hawaii (6.8%).
• Average gas prices decreased the most between March 2022 and March 2023 in South Carolina (13.7%), Connecticut (13.3%) and Delaware (13.0%).
• By metro, average gas prices jumped the most in three Colorado metros: Boulder (22.4%), Fort Collins (21.9%) and Denver (21.1%).
• By metro, average gas prices decreased the most in Greenville, S.C. (17.1%), Dallas (16.6%) and Fort Worth, Texas (16.3%).

Average gas prices fall 7.2% nationwide — here’s how they fluctuated

On March 1, 2023, the average U.S. gas price was $3.36 per gallon. That’s a relief for many U.S. drivers, as it’s down 7.2% from $3.62 on March 1, 2022.

The year-over-year drop largely boils down to supply and demand. Global oil demand fell — partly due to recession fears, COVID-19 outbreaks in China and consumers cutting back — causing prices to fall.

This comes after a long year of volatile gas prices. Much to the pain of most U.S. consumers’ pockets, the average gas price per gallon in 2022 was $3.95. At the beginning of the year, the average price was $3.32. Prices subsequently skyrocketed, reaching a peak of $4.93 in June before tumbling to its lowest average of the year ($3.21) in December.

Average gas prices in 2022

Source: U.S. Energy Information Administration (EIA).

Several factors accounted for the fluctuations in gas prices in 2022, including global tensions. After Russia invaded Ukraine in February 2022, several countries (including the U.S.) imposed bans on Russian oil imports. With the U.S. previously importing around 700,000 barrels per day of crude oil and refined petroleum products from Russia, oil supply fell and prices subsequently rose.

Perhaps driven by such high prices, energy demand subsequently dropped worldwide throughout the second half of the year — causing gas prices to fall throughout the remainder of the year.

It’s worth noting how high gas prices were in 2022. To put it into perspective, six of the 10 months with the highest average gas prices dating back to 1992 occurred in 2022 — with the year taking the top five spots. Notably, the only other months where average gas prices reached over $4 a gallon occurred in June and July 2008, when demand was high but global oil production was low.

Highest gas prices (historical)

Source: EIA. Note: Prices aren’t adjusted for inflation.

Still, by year, 2022 wasn’t the worst as far as gas prices go. When adjusted for inflation, 2012 had the highest average gas prices at $4.61 per gallon. Before adjusting for inflation, it was $3.62 per gallon. Similarly, global tensions — particularly in the Middle East — played a large role in high prices in 2012, along with refinery outages and natural disasters.

Average gas prices dating to 1992

Source: EIA.

Average gas prices are highest in Hawaii, lowest in Texas

As of March 1, 2023, the highest average gas price is in Hawaii at $4.88 per gallon. That’s followed by California ($4.79) and Nevada ($4.27).

According to LendingTree chief credit analyst Matt Schulz, demand and regulation largely affect gas prices here. “While access certainly plays a role in gas prices in Hawaii, California has some of the highest gas tax rates and strictest environmental regulations in the country,” he says.

States with the highest average gas prices

Source: AAA. Note: Prices as of March 1, 2023.

On the other hand, Texas has the lowest average gas prices at $2.91 per gallon. That’s followed by Mississippi ($2.96) and Kentucky ($2.97).

According to Schulz, access plays the largest role in prices here.

“There are plenty of reasons why these states rank lowest, but a big part of it is simply that with all the refineries along the Texas and Mississippi coast, it’s pretty easy and inexpensive to get gas to gas stations in these states,” he says. “In addition, those two states have among the lowest gas tax rates in the nation.”

States with the lowest average gas prices

Source: AAA. Note: Prices as of March 1, 2023.

Full rankings

Highest average gas prices (by state)

Source: AAA. Note: Prices as of March 1, 2023.

Where average prices jumped (and fell) the most

It’s also worth noting which states saw the biggest year-over-year changes. Average gas prices jumped the most between March 2022 and March 2023 in Colorado — $3.39 to $4.03, an increase of 19.0%.

That’s followed by Utah, where prices rose from $3.47 to $3.73 (7.3%), and Hawaii, where prices rose from $4.57 to $4.88 (6.8%).

What could account for the jumps here? In Colorado, the state’s only oil refinery shut down in December 2022 — likely accounting for a large chunk of rising gas prices here. That oil refinery shutdown also impacted prices in Utah, which also had a refinery shut down for maintenance.

States with the biggest jumps in average gas prices

Source: LendingTree analysis of AAA data.

Meanwhile, average gas prices decreased the most between March 2022 and March 2023 in South Carolina. Here, gas prices fell from $3.48 to $3.00 (13.7%). That’s followed by Connecticut, where prices fell from $3.73 to $3.23 (13.3%), and Delaware, where prices fell from $3.61 to $3.14 (13.0%).

States with the biggest decreases in average gas prices

Source: LendingTree analysis of AAA data.

Full rankings

Changes in average gas prices (by state)

Source: LendingTree analysis of AAA data.

Colorado metros dominate list of biggest increases

By metro, the fluctuations are even more pronounced. Three Colorado metros saw average gas prices jump the most. At the top of the list, Boulder saw the largest jump, from $3.31 to $4.05 per gallon (22.4%). That’s followed by Fort Collins, where prices rose from $3.35 to $4.08 (21.9%), and Denver, where prices rose from $3.32 to $4.02 (21.1%).

Metros with the biggest jumps in average gas prices

Source: LendingTree analysis of AAA data.

Meanwhile, the metro with the largest drop in gas prices also was in South Carolina. Average gas prices decreased the most in Greenville, where they went from $3.48 to $2.89 (17.1%). That’s followed by Dallas, where prices dropped from $3.38 to $2.82 (16.6%), and Fort Worth, Texas, where prices dropped from $3.38 to $2.83 (16.3%).

Metros with the biggest decreases in average gas prices

Source: LendingTree analysis of AAA data.

Utilizing credit cards for cash back at the gas station: Expert tips

Although gas prices have fallen across the U.S., drivers should keep in mind that those decreases aren’t permanent. In fact, the U.S. Energy Information Administration (EIA) forecasts gas to be $3.36 per gallon in 2023 and $3.11 per gallon in 2024.

However, Schulz says that isn’t necessarily the end of the world for drivers, as there are a few things you can do to save on gas at the pump.

His first tip? Shop around.

Next, Schulz says to leverage credit cards with the best gas station rewards.

“Whether you’re loyal to one specific gas station chain or just looking to save on gas prices no matter where you fill up, there are plenty of credit cards that can help you,” he says. “Just know that gas station-specific cards tend to have higher-than-average APRs, so if you’re going to use them, make sure you pay them off in full every month. Otherwise, the amount you save on gas can quickly be outweighed by how much you accrue in interest.”

Methodology

LendingTree researchers analyzed AAA data on average regular gas prices in states and metros. Prices are as of March 1, 2023, and are compared to those on March 1, 2022.

U.S. Energy Information Administration (EIA) data was used for average historical prices for regular gas per gallon.