Why is gas cheaper in North Dakota?
North Dakota's gasoline averages $3.01 a gallon, $0.37 below the U.S. average of $3.38. About 23 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 North Dakota stations.
What you're paying for
North Dakota pays about $0.37 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
North Dakota U.S. average
North Dakota, explained
Why does gas cost about $3.01 a gallon in North Dakota?−
Using the U.S. Energy Information Administration's national price breakdown, North Dakota's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.38 for distribution and marketing, the 18.4-cent federal excise tax, and about 23 cents in state taxes. That puts it $0.37 below the national average of $3.38.
How much of North Dakota's gas price is taxes?+
North Dakota charges about 23 cents per gallon in state gasoline taxes, on top of the 18.4-cent federal tax. Combined, taxes make up roughly 14% of the $3.01 pump price.
Does North Dakota have a carbon program or special gasoline blend?+
No. Unlike California and Washington, North Dakota does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.