Thursday, August 20, 2026

Blue States. High Rates ($0.55/gallon premium)

A report by the Institute for Energy Research reveals that gasoline prices are higher in Democratic-controlled states compared to Republican-controlled states. This difference is largely attributed to specific state policies and taxes.

In 2026, gasoline in Democratic-controlled states averaged $3.69 per gallon, while Republican-controlled states averaged $3.14, showing a $0.55 gap.

Over the period from 2017 to 2026, the average price gap was about $0.45 per gallon.

The primary factors contributing to this price gap include state gasoline taxes, regulations in the West Coast refining region, California-specific costs, and federal fuel rules.

State gasoline taxes are significant, with about 89 cents of every dollar collected passed on to consumers, and Democratic-controlled states impose higher taxes.

Price increases in the last five years were steeper in Democratic states ($0.86 increase) than in Republican states ($0.62 increase), influenced mainly by California, Hawaii, Washington, and Oregon.

This pattern arose from long-standing policies rather than current political leadership.

The higher gasoline prices in Democratic-controlled states stem from decades of policy decisions rather than the political party currently in charge. The significant factors include state taxes and regulations, which have a direct impact on consumers. 

https://www.masterresource.org/gasoline-prices/blue-states-high-rates-55-cent/

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