Why is gas cheaper in Kentucky?
Kentucky's gasoline averages $3.15 a gallon, $0.23 below the U.S. average of $3.38. About 26 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 Kentucky stations.
What you're paying for
Kentucky pays about $0.23 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
Kentucky U.S. average
Kentucky, explained
Why does gas cost about $3.15 a gallon in Kentucky?−
Using the U.S. Energy Information Administration's national price breakdown, Kentucky's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.49 for distribution and marketing, the 18.4-cent federal excise tax, and about 26 cents in state taxes. That puts it $0.23 below the national average of $3.38.
How much of Kentucky's gas price is taxes?+
Kentucky charges about 26 cents per gallon in state gasoline taxes, on top of the 18.4-cent federal tax. Combined, taxes make up roughly 14% of the $3.15 pump price.
Does Kentucky have a carbon program or special gasoline blend?+
No. Unlike California and Washington, Kentucky does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.