Fiscal woes in Europe and sluggish job growth in the United States have put downward pressures on oil prices. As a result, gasoline prices declined in all but two states over the past month, dropping 7.1% across the country. In many of these, gas prices are on the verge of falling below $3.00 per gallon.
Despite the overall decline, the range between gas prices among states is still wide. 24/7 Wall St. examined AAA’s Daily Fuel Gauge Report to determine the 10 states in which residents pay the least at the pump. They found that the most decisive factor in determining gas prices is location. Most of the states with low gas prices are located on or near the Gulf of Mexico. They also have among the lowest gas taxes in the country.
Five of the 10 states with the lowest gas prices are located on the Gulf Coast, where a disproportionate amount of crude oil is processed. Furthermore, among the five states not on the Gulf Coast, three border the coastal states. Residents of these three states benefit from lower costs of transporting oil. (Istockphoto) More From 24/7 Wall St.
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