Why is gas cheaper in New Mexico?
New Mexico's gasoline averages $3.19 a gallon, $0.19 below the U.S. average of $3.38. About 19 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 New Mexico stations.
What you're paying for
New Mexico pays about $0.19 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
New Mexico U.S. average
New Mexico, explained
Why does gas cost about $3.19 a gallon in New Mexico?−
Using the U.S. Energy Information Administration's national price breakdown, New Mexico's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.60 for distribution and marketing, the 18.4-cent federal excise tax, and about 19 cents in state taxes. That puts it $0.19 below the national average of $3.38.
How much of New Mexico's gas price is taxes?+
New Mexico charges about 19 cents per gallon in state gasoline taxes, on top of the 18.4-cent federal tax. Combined, taxes make up roughly 12% of the $3.19 pump price.
Does New Mexico have a carbon program or special gasoline blend?+
No. Unlike California and Washington, New Mexico does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.