Oklahoma’s gasoline prices aren’t the lowest in the U.S. but according to the U.S. Energy Information Administration, they’re in the top three states for lowest in the U.S.
The average price of $2.76 per gallon is also more than $2 less a gallon compared to drivers in California where the average is $4.85 per gallon.
Why are California prices so high? According to the EIA, it’s largely due to stae taxes but the California Energy Commission estimates that environmental compliance costs added as much as $0.54/gal as of March 2025. The state’s Cap-and-Trade Program and Low Carbon Fuel Standard reflect costs associated with fuel supplier emissions and carbon intensity, and these costs are ultimately reflected in the price consumers pay at the pump.
California also mandates a special blend of gasoline designed to reduce pollution and improve air quality. This fuel burns cleaner but is more expensive to produce because it requires more processing steps and expensive blending components.
Refiners outside the state only make this blend to supply California’s market, meaning that California primarily relies on in-state refineries for its gasoline supply.
