Why is gas expensive in Indiana?
Indiana's gasoline averages $3.43 a gallon, $0.05 above the U.S. average of $3.38. About 54 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 Indiana stations.
What you're paying for
Indiana pays about $0.05 more per gallon than the U.S. average. State taxes and regional supply costs account for most of the gap.
Against its neighbors
Amber line marks the U.S. average of $3.38.
Price over time
Indiana U.S. average
Indiana, explained
Why does gas cost about $3.43 a gallon in Indiana?−
Using the U.S. Energy Information Administration's national price breakdown, Indiana's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.48 for distribution and marketing, the 18.4-cent federal excise tax, and about 54 cents in state taxes. That puts it $0.05 above the national average of $3.38.
How much of Indiana's gas price is taxes?+
Indiana charges about 54 cents per gallon in state gasoline taxes, on top of the 18.4-cent federal tax. Combined, taxes make up roughly 21% of the $3.43 pump price.
Does Indiana have a carbon program or special gasoline blend?+
No. Unlike California and Washington, Indiana does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.