Did you know that Americans are spending more on gas in states like Indiana, Wyoming, and Missouri than in states with higher gas prices like California and Washington? This surprising finding comes from a new analysis by Bankrate of AAA and Federal Highway Administration data.
The reason for this discrepancy lies in the average annual mileage of drivers in these states. Drivers in Indiana, for example, drive nearly 20,600 miles per year and spend around $3,000 on gas annually, while drivers in California drive only about 11,400 miles and spend approximately $2,000 per year on gas.
Whether you live in a high- or low-cost gasoline state, there are ways to cut back on your fuel expenses. Here’s where Americans are spending the most and least on gas across the country based on their driving habits, along with some tips on how to spend less at the pump.
Gas expenditures can be a surprising hidden cost of car ownership, especially for drivers living in more rural areas where their daily travels are spread out over a larger area.
— Shannon Martin, Bankrate insurance analyst
Drivers are spending the most on gas in Indiana, Wyoming and Missouri
Gas prices matter to the extent that you’re driving. The more driving you do, the more you’ll spend on gas, even if the price per gallon is cheaper in your state compared to other states.
According to Bankrate’s calculations, drivers in Indiana ($2,913), Wyoming ($2,765) and Missouri ($2,279) have the highest average gas costs per year. Residents in Indiana, Wyoming and Missouri tend to drive more and, therefore, spend more on gas annually. The 10 states with the highest annual gas costs tend to have a lower cost of living and lower gas prices at the pump, with the exception of Indiana.
The average price for a gallon of regular gas was $3.68 in Indiana, $3.33 in Wyoming and $3.20 in Missouri as of late July, but here’s how many miles people are driving on average in those states, according to 2023 Federal Highway Administration data:
- Wyoming: 21,588 miles
- Indiana: 20,560 miles
- Missouri: 18,514 miles
Comparatively, drivers in the District of Columbia ($956), Rhode Island ($1,314) and New York ($1,329) have the lowest average gas costs per year. Residents in those states are driving significantly less on average per year:
- District of Columbia: 6,695 miles
- New York: 9,548 miles
- Washington: 9,819 miles
As of late July, the average price for a gallon of regular gas in the District of Columbia was $3.71, $3.62 in New York and $4.25 in Washington.
What about states with high gas prices like California and Washington?
There’s no denying that gas prices are higher in certain parts of the country, like California and the Pacific Northwest. As of late July, the average price for a gallon of regular gas in those parts of the country hovered between $4.66 and $4.25 — the highest in the country.
But that doesn’t mean residents of those states are shelling out more for gas. In fact, people in California, Oregon, and Washington spend less on gas on average because they drive less. A variety of factors, like fuel costs, public transportation and density, account for the big differences between driving habits in each state.
Californians drive 11,409 miles per year, which is about 2,187 miles less than the average American motorist and 10,179 miles less than their counterparts in Wyoming. People also drive less in the Pacific Northwest, averaging 9,819 miles per year in Washington and 11,780 miles per year in Oregon.
Assuming that the average car in the U.S. travels about 26 miles on a gallon of gas, Californians average roughly $2,043 per year on gas. Drivers in Washington and Oregon spend a little less than that on average: $1,605 and $1,790 annually, respectively.
Gas prices have been trending down across the country over the last few months due to falling oil prices. The national average for a gallon of regular gas hovered around $3.50 as of late July, similar to the price in June, according to AAA data. A year ago, the national price of regular gas was around $3.85 per gallon.
“Oil prices have fallen quite a bit lately. In April, a barrel of oil was in the upper $80s, but today, it is $10 a barrel cheaper,” Andrew Gross, AAA spokesperson, said in a statement in July. “That might mitigate any upward pressure on pump prices.”
See where your state ranks for annual gas costs
How to save money at the gas pump
Consider incorporating these five hacks into your day-to-day to keep your gas expenses down.
1. Shop around: If you’re turning into the first gas station you see, you’re likely leaving money on the table. Instead, be proactive and research the lowest-priced options near you through free gas apps like GasBuddy, Gas Guru, and AAA.
If you’re looking to save money on gas, there are several strategies you can consider:
- Use gas price apps: These apps can help you find the lowest gas prices no matter where you are in the country. You can even sort the results by fuel grade, distance, and price.
- Join a rewards program: If you’re loyal to a specific gas station, consider joining its rewards program. Many popular gas stations and grocery stores offer incentives for filling up at their stations, which can add up to significant savings over time.
- Consider paying with cash: Some gas stations offer lower prices if you pay with cash instead of a card. While the difference may be small, it can lead to tangible savings, especially if you consistently opt for cash payments.
- Leverage a cash back credit card: Using a cash back credit card can earn you rewards that translate into savings at the pump. Look for credit cards that offer cash back at gas stations to maximize your savings.
- Consider mass transit: Taking advantage of public transportation or bundling errands together can help you save on fuel costs.
By incorporating these strategies into your routine, you can effectively reduce your gas expenses and keep more money in your pocket.