Why is gas cheaper in South Dakota?
South Dakota's gasoline averages $3.06 a gallon, $0.32 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 South Dakota stations.
What you're paying for
South Dakota pays about $0.32 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
South Dakota U.S. average
South Dakota, explained
Why does gas cost about $3.06 a gallon in South Dakota?−
Using the U.S. Energy Information Administration's national price breakdown, South Dakota's pump price is roughly $1.74 for crude oil, $0.48 for refining, $0.36 for distribution and marketing, the 18.4-cent federal excise tax, and about 30 cents in state taxes. That puts it $0.32 below the national average of $3.38.
How much of South Dakota's gas price is taxes?+
South Dakota 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 $3.06 pump price.
Does South Dakota have a carbon program or special gasoline blend?+
No. Unlike California and Washington, South Dakota does not put a carbon price on motor fuel or require a state-specific gasoline blend, so neither adds to its pump price.