Why is gas cheaper in Arkansas?
Arkansas's gasoline averages $2.96 a gallon, $0.42 below the U.S. average of $3.38. About 25 cents per gallon comes from state taxes. The rest is crude oil, which is roughly half the pump price nationwide, plus the cost of refining and delivering fuel to Arkansas stations.
What you're paying for
Arkansas pays about $0.42 less per gallon than the U.S. average, helped by low state taxes and ample regional fuel supply.
Against its neighbors
Amber line marks the U.S. average of $3.38.
Price over time
Arkansas U.S. average
Arkansas, explained
Why does gas cost about $2.96 a gallon in Arkansas?−
Using the U.S. Energy Information Administration's national price breakdown, Arkansas's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.31 for distribution and marketing, the 18.4-cent federal excise tax, and about 25 cents in state taxes. That puts it $0.42 below the national average of $3.38.
How much of Arkansas's gas price is taxes?+
Arkansas charges about 25 cents per gallon in state gasoline taxes, on top of the 18.4-cent federal tax. Combined, taxes make up roughly 15% of the $2.96 pump price.
Does Arkansas have a carbon program or special gasoline blend?+
No. Unlike California and Washington, Arkansas does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.