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The Gulf Coast is the U.S. region where gasoline is most often cheapest, according to the U.S. Energy Information Administration (EIA). The main reasons are a large refining base in the region and gasoline taxes below the national average. The pattern is a recurring tendency, not a guarantee for every station or every week, and the sections below explain what the evidence does and does not show.
Where the Gulf Coast ranks
EIA’s annual comparison for 2025 puts the Gulf Coast at the bottom of the regional price range and the West Coast at the top. The table below sets those annual averages next to a recent weekly snapshot. The two kinds of figure measure different things, so they should not be compared directly.
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| Figure | Value | What it measures | Date | Source |
|---|---|---|---|---|
| Gulf Coast average | $2.39 per gallon | EIA annual regional average, lowest of the regions | 2025 annual | EIA, 2025 retail gasoline review |
| West Coast average | $4.32 per gallon | EIA annual regional average, highest of the regions | 2025 annual | EIA, 2025 retail gasoline review |
| Gulf Coast regular gasoline | $3.911 per gallon | EIA weekly retail price, regular grade | Week of Oct. 5, 2026 | EIA weekly retail prices series |
| U.S. average regular gasoline | $4.354 per gallon | EIA weekly retail price, regular grade, national | Week of Oct. 5, 2026 | EIA weekly retail prices series |
In EIA’s 2025 annual averages, the gap between the two regions was about $1.93 per gallon (calculated from the $4.32 and $2.39 figures). The annual averages describe 2025 and are not today’s pump prices. The October 2026 weekly figures describe one week and will change as the EIA series is updated.
Why the Gulf Coast is usually cheapest
Refining capacity close to supply
EIA says the Gulf Coast holds more than half of U.S. refining capacity. Gasoline is produced there in volume, and it moves to market through pipelines, ports, and blending terminals. EIA explains that retail prices tend to be higher the farther a region is from supply, because transportation adds cost. A region with a large refining base sits close to the source of gasoline, which lowers that transport component.
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Lower gasoline taxes
Taxes are the second factor EIA names. In its May 22, 2026 analysis of Memorial Day prices, EIA states: “Gasoline prices are usually the lowest on the Gulf Coast, home to more than half of U.S. refining capacity and lower gasoline taxes than the national average.” State and local taxes are one of several reasons regional prices differ, so taxes explain part of the gap rather than all of it.
Why the West Coast is usually the expensive end
EIA’s regional explanation points to several West Coast conditions that push prices up:
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- Limited connections to other refining centers. When a region cannot easily draw supply from elsewhere, local shortages are harder to offset.
- Tight local supply and demand. Demand is high relative to nearby supply.
- Relatively high taxes in several states. EIA describes taxes above the average in several West Coast states.
- California’s special gasoline specifications. California requires a distinctive fuel blend, and relatively few refineries produce it. When an outage hits one of them, replacement supply can take time to arrive, so prices can spike.
Why the ranking is a tendency, not a guarantee
EIA’s regional differences page states: “In addition to differences in state and local taxes, other factors contribute to regional differences in gasoline prices, including distance from supply, supply disruptions, retail competition, and operating costs.” Those factors move prices in both directions, so a region can rank differently in a given week or month. The factors include:
- Crude oil prices, which affect every region.
- Refinery outages and scheduled maintenance.
- Local demand and the number of competing stations.
- Transportation costs and distance from supply.
- Fuel specifications required in a given area.
- Operating costs for stations and distributors.
- Environmental fuel programs and restrictions on transporting or storing fuel, which add production, storage, and distribution costs.
The full regional explanation is on EIA’s Gasoline explained: Regional price differences page.
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How to compare prices fairly
- Compare the same grade. EIA’s weekly series reports regular gasoline, so use regular when checking regional figures.
- Compare the same measure. Set annual averages against annual averages and weekly figures against weekly figures.
- Check the latest weekly value in the EIA weekly retail prices series rather than relying on a figure from an older article.
- Remember that a regional average hides station-level differences. Within any region, nearby stations can price several cents apart, so the regional pattern is a starting point for understanding prices, not a substitute for checking your own area.
What EIA expects next
In a January 20, 2026 forecast, EIA expected the Gulf Coast to remain the lowest-price region through 2027 and the West Coast to remain the highest. This is a forecast made at that date, not an observed outcome for the full period. The EIA forecast of lower gasoline prices in 2026 and 2027 sets out the assumptions behind it, most importantly the expected path of crude oil prices.
The ranking of the Gulf Coast as cheapest and the West Coast as most expensive has held across EIA’s recent regional comparisons, and EIA’s stated causes, refining capacity, taxes, distance from supply, and West Coast fuel rules, are the reasons behind that pattern.
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For a wider look at the same question, the EIA’s annual review of 2025 retail prices, In 2025, U.S. retail gasoline prices decreased for third consecutive year, places the regional averages in the context of national trends.
The Memorial Day analysis that EIA published in May 2026 is available as The regional differences in gasoline prices this Memorial Day.
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In short, the Gulf Coast is the region most consistently associated with the cheapest gasoline, and the reasons are structural: refining capacity close to supply and lower taxes. Those structural factors make the pattern durable, but weekly prices still depend on crude oil, disruptions, and local conditions.
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