Why is gas cheaper in Georgia?
Georgia drivers pay $3.11 per gallon, about 28 cents below the national average. The state's combined fuel tax burden is moderate at about 32 cents per gallon, the Atlanta metro is the only federal RFG area, and Colonial Pipeline access to Gulf Coast refineries provides cheap and reliable supply. Georgia has no state-specific fuel blend and no carbon programs.
What you're paying for
State taxes and policy in Georgia add an estimated $0.41 per gallon on top of the roughly $2.70 base cost (crude oil, distribution, and the federal excise tax) that every U.S. driver pays.
Against its neighbors
Amber line marks the U.S. average of $3.38.
Price over time
Georgia U.S. average
Georgia, explained
Why are gas prices in Georgia below the national average?−
Three reasons. First, Georgia's combined state and federal tax of about 51 cents per gallon is below the national median. Second, Georgia is a major hub for the Colonial Pipeline, which delivers refined product from Gulf Coast refineries; this provides cheap and reliable wholesale supply. Third, Georgia has no state cap-and-trade program, no low-carbon fuel standard, and no state-specific fuel blend, so there are no climate-policy costs added to retail prices. The Atlanta metro pays a small federal RFG premium, but most of the state pays no such premium.
How much is the Georgia gas tax?+
Georgia's state excise tax on gasoline is 33.1 cents per gallon, indexed to inflation and adjusted each July 1. The tax was last restructured by the 2015 Transportation Funding Act. Combined with the 18.4-cent federal excise tax, drivers pay about 52 cents per gallon in direct fuel tax, near the national median. Georgia does not apply the state sales tax to motor fuel.
Why does the Atlanta area have higher gas prices?+
The Atlanta metropolitan area (Fulton, DeKalb, Cobb, Gwinnett, Clayton, Cherokee, Coweta, Douglas, Fayette, Forsyth, Henry, Paulding, and Rockdale counties) is a federal ozone non-attainment area and uses federal Reformulated Gasoline (RFG) blends from May 1 through September 15 each year. RFG-blend gasoline costs about 7 to 8 cents per gallon more than conventional fuel. Outside the Atlanta area, the rest of Georgia uses conventional federal-spec gasoline year-round.
Will Georgia adopt cap-and-trade or an LCFS?+
There is no active proposal. Georgia has been under unified Republican control since 2005, and has not pursued any state-level transportation-fuel pricing programs. The 2020 election did not change the legislative makeup. Our model projects Georgia prices will continue to track below the national average under current policy.
Why is Georgia cheaper than Florida if both are southeastern Atlantic states?+
Two main reasons. First, Georgia has direct Colonial Pipeline access to Gulf Coast refineries; Florida must import all gasoline by marine tanker, adding shipping costs. Second, Florida's tax burden of about 39 cents per gallon is slightly higher than Georgia's 33 cents. The combined effect is about 30 cents per gallon of Florida-vs-Georgia premium.
Does Georgia's lack of in-state refineries hurt drivers?+
Not measurably. Although Georgia has no operating refineries, the Colonial Pipeline delivers reliable refined product from Gulf Coast refineries in Texas and Louisiana, which together produce roughly one-third of national gasoline supply. Pipeline supply is cheaper than marine tanker supply and provides more stable prices than states (like Florida) that must rely on waterborne imports.