Why is gas cheaper in Iowa?
Iowa's gasoline averages $2.98 a gallon, $0.40 below the U.S. average of $3.38. About 30 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 Iowa stations.
What you're paying for
Iowa pays about $0.40 less per gallon than the U.S. average, helped by ample regional fuel supply.
Against its neighbors
Amber line marks the U.S. average of $3.38.
Price over time
Iowa U.S. average
Iowa, explained
Why does gas cost about $2.98 a gallon in Iowa?−
Using the U.S. Energy Information Administration's national price breakdown, Iowa's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.28 for distribution and marketing, the 18.4-cent federal excise tax, and about 30 cents in state taxes. That puts it $0.40 below the national average of $3.38.
How much of Iowa's gas price is taxes?+
Iowa charges about 30 cents per gallon in state gasoline taxes, on top of the 18.4-cent federal tax. Combined, taxes make up roughly 16% of the $2.98 pump price.
Does Iowa have a carbon program or special gasoline blend?+
No. Unlike California and Washington, Iowa does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.