Where in the United States do Americans spend the most on gas? The answer might surprise you.
Expensive states like California and Washington are notorious for high gas prices, but there’s another factor that’s often overlooked: average miles driven per year.
A new analysis by Bankrate using data from AAA and the Federal Highway Administration finds that Americans spend more on gas, on average, in states with affordable gas prices, like Indiana, Wyoming and Missouri, than in states with higher gas prices, like California and Washington.
The reason? Drivers in lower-cost states tend to spend much more time on the road and burn more gas than their counterparts in higher-cost states. For example, drivers in Indiana, on average, drive about 20,600 miles a year and spend about $3,000 on gas, while drivers in California drive about 11,400 miles a year and spend about $2,000 on gas, according to Bankrate’s Hidden Costs of Car Ownership Study.
Whether you live in a state with high or low gas prices, our analysis shows there’s a way to cut down on what you pay at the pump. Here’s where Americans spend the most and least on gas across the country, based on their driving habits, plus tips to save money on fuel.
Gasoline costs can be a surprising and hidden cost of car ownership, especially for drivers who live in rural areas with large daily trips.
— Shannon Martin, Bankrate Insurance Analyst
Indiana, Wyoming and Missouri drivers spend the most on gas
Gas prices vary depending on how much you drive. The more you drive, the more you’ll spend on gas, even if gas prices in your state are lower than in other states.
According to Bankrate’s calculations, drivers in Indiana ($2,913), Wyoming ($2,765) and Missouri ($2,279) have the highest average annual gas bills. Indiana, Wyoming and Missouri residents drive more, which means they spend more on gas each year. All of the top 10 states with the highest annual gas bills, except for Indiana, have a lower cost of living and tend to have lower gas prices at the pump.
As of late July, the average price of a gallon of regular gasoline was $3.68 in Indiana, $3.33 in Wyoming, and $3.20 in Missouri, but here’s how many miles people are driving on average in those states, according to 2022 Federal Highway Administration data.
- Wyoming: 21,588 miles
- Indiana: 20,560 miles
- Missouri: 18,514 miles
By comparison, drivers in the District of Columbia ($956), Rhode Island ($1,314) and New York ($1,329) have the lowest average annual gasoline costs. Residents of these states drive significantly less per year, on average.
- District of Columbia: 6,695 miles
- New York: 9,548 miles
- Washington: 9,819 miles
As of late July, the average price of a gallon of regular gasoline in the District of Columbia was $3.71, in New York it was $3.62, and in Washington it was $4.25.
What about states with high gas prices like California and Washington?
There’s no denying that gasoline prices are high in some parts of the country, such as California and the Pacific Northwest. As of late July, the average price per gallon of regular gasoline in these regions was hovering between $4.66 and $4.25, some of the highest in the country.
But that doesn’t mean residents of those states spend more on gas. In fact, residents of California, Oregon, and Washington spend less on gas, on average, because they drive less. A variety of factors, including fuel costs, public transportation, and population density, account for the big differences in driving habits across states.
Californians drive 11,409 miles per year, about 2,187 fewer miles than the average American driver and 10,179 fewer miles than drivers in Wyoming. People in the Pacific Northwest also drive less, with Washington state driving an average of 9,819 miles per year and Oregonians driving an average of 11,780 miles per year.
Assuming the average U.S. car gets about 26 miles per gallon of gas, Californians spend an average of about $2,043 a year on gas. Drivers in Washington and Oregon spend a little less on average, $1,605 and $1,790 a year, respectively.
Gasoline prices have been trending downward nationwide in recent months due to falling crude oil prices. According to data from AAA, the national average price for a gallon of regular gasoline was hovering around $3.50 as of late July, the same as in June. A year ago, the national price for regular gasoline was around $3.85 per gallon.
“Oil prices have fallen considerably recently, from the high $80s a barrel in April to $10 a barrel lower today,” AAA spokesman Andrew Gross said in a July statement. “This may ease upward pressure on gasoline prices.”
See how your state ranks in annual gas costs
How to save money at the gas station
Consider incorporating these five tips into your daily routine to help save money on gas.
1. Explore: You could end up wasting money if you try to go into the first gas station you see. Instead, be proactive and use a free gas app like GasBuddy, Gas Guru, or AAA to find the cheapest gas stations near you. These apps will tell you the cheapest gas stations anywhere in the country, and you can sort the results by fuel grade, distance, and price.
2. Join the rewards program: If you frequent a particular gas station in your neighborhood, consider joining their rewards program if they have one. Many grocery stores and popular gas stations, like ExxonMobil and Shell, offer rewards when you fill up at their stations. The rewards may be small, but they could add up to big savings in the long run.
3. Consider paying in cash. It may be wise to set aside some cash for gas, especially if you are traveling long distances by car.. Some gas stations offer cheaper gas prices if you pay with cash instead of a debit or credit card. The difference is small, usually 5 to 10 cents, but consistently paying lower gas prices with cash can add up to noticeable savings.
4. Take advantage of cash back credit cards: Another way to save at the pump is to use a cash-back credit card. While a credit card won’t get you lower gas prices, the gas rewards you earn when you fill up at gas stations can help you save even more. Some credit cards offer up to 3 percent cash back at gas stations, which can set you back hundreds of dollars a year if you use your card responsibly.
5. Consider public transportation: The easiest way to save money on gas is to take public transportation instead of driving when it’s convenient. If you have to drive somewhere, strategically group your errands together to conserve fuel.
