The Most and Least Affordable Cities for Gas in America
Energy costs have been one of the big ongoing news stories of the 2020s, and there are few places where price fluctuation is as noticeable as the gas pump.
The supply chain disruption of the lockdown era and the record $5+ a gallon prices that followed the Russian invasion of Ukraine caused motorists to cut down on journeys. But in 2024, gasoline prices have returned to 2021 levels, having declined by 13% between April and September. Savings of 50 cents per gallon have delivered some Southern and Central states average prices of under $3/gallon.
The fall in prices not only reflects, in part, a decline in demand but also a fall in the cost of crude oil. But not every area is enjoying equally low prices — and gasoline affordability is particularly uneven from city to city when you balance local prices against local income.
Following our original studies on the cost and affordability of everyday essentials in America, the team here at CashNetUSA has taken a deep dive into how affordable gas is nationwide right now. We compared the average price of a gallon against the local average hourly wage in every state and medium-large city in America.
What We Did
We collected the average price of gas per gallon in 2024 in every state and medium and large city from AAA.com. Then, we used U.S. Bureau of Economic Analysis data to calculate the percentage of each area’s local hourly salary needed to afford a gallon of gas, giving us each locality’s ‘affordability.’
Key Findings
- A gallon of gas in Hawaii costs 19.19% of the local average hourly wage — the least affordable of any U.S. state.
- Fresno, CA, is the least affordable major city for gasoline, at 21.31% of the local average hourly wage.
- The most affordable gasoline of any city is in Boulder, CO, where a gallon costs 10.80% of the local average hourly wage.
Massachusetts Has the Most Affordable Gasoline of Any State
A gallon of gasoline in Massachusetts costs $3.428, which is 11.75% of the local average wage of $29 — making Massachusetts the most affordable state for gas right now. The average price in the state dipped below $3 in October 2024, even as the price in neighboring states floated above that figure. This is after the cost rose to $5.05 a gallon in June 2022.
“Domestic refiners are producing more gasoline than the market can swallow,” explained Mark Schieldrop, senior spokesperson for the travel association AAA Northeast, “and that means pump prices could soon reach lows not seen in years.”
In Alaska, gas is pretty affordable right now — at just 13.93% of the average hourly wage, only nine states are better off. Although Alaska has seen high prices due to its remote position, the state is on the same supply line as much of the West Coast and benefits from a regional price dip all the same. “On any given day, you can look at the GasBuddy prices here in Southcentral [Alaska] and, you know, Seattle or anywhere on the West Coast, and to a large extent they’re very comparable,” says Patrick Mulligan, director of supply chain management firm Shoreline.
Things are not so rosy in the other non-contiguous state, Hawaii, where a gallon ($4.660) costs 19.19% of the hourly wage ($24). This makes Hawaii America’s least affordable state for gasoline.
Mississippi Has the Cheapest Gas in the U.S.
It’s not surprising that Mississippi, which has the lowest cost of living out of any state, has cheap gas. The state taxes gas less than many other states and it is well-placed for access to oil refineries in nearby Texas and Louisiana, which means oil transport costs are lower.
Transporting costs could be a driving factor for Hawaii being the state with the most expensive gas. As it has no proven oil reserves, it has to ship all its fuel from the mainland United States. However, California’s high gas prices rival Hawaii’s and are only $29 a year cheaper on average. This is purportedly due to California’s higher taxes and the shrinking number of regional refineries.
“Special Blend” Makes Fresno, CA, the Least Affordable Major City for Gas
Next, we surveyed America’s major cities with populations greater than 500K. We found Fresno, CA, to be the least affordable major city for gas in 2024, with a $4.56 gallon equating to 21.31% of the local average hourly wage.
California is the only state to produce its own special blend of gas, claimed to be the cleanest in the world — but this limits the number of refineries that can produce it. “These things require a lot of maintenance,” says Scott Cain of West Hills Oil. “[B]ut what makes it even worse is if I planned for my refinery to go down and the neighboring refinery is not going down but has unplanned maintenance, then it creates a crisis.”
Despite the state’s pricey specialist gas, the Californian city of San Jose has the second-most affordable gas of any major city, with a gallon costing just 11.70% of the local hourly wage. However, this is not due to cheaper gas in San Jose but a high average hourly wage of $39.17.
The State of California Air Resources Board (CARB) has suggested that motoring will become more affordable for locals when they embrace electric cars and other alternatives. “As Californians transition away from fossil fuels and into more energy efficient [zero-emission vehicles] and lower carbon fuel alternatives, CARB staff estimate that the fuel costs Californians pay to travel also will decrease, resulting in billions of dollars in savings on fuel costs each year,” according to a 2023 CARB study.
Colorado Cities Among Best Locations for Gas
Finally, we incorporated medium-sized cities with a population of over 100K into our results. While the most affordable cities for gas are scattered across a range of locations, including multiple cities in Colorado, Massachusetts and New Jersey, nine of the ten least affordable cities are in California — where a “boutique” blend of fuels has been adopted to counter the state’s historically poor air quality (see “Special Blend” Makes Fresno, CA, the Least Affordable Major City for Gas, above).
The most affordable city for gas is Boulder, CO, where a gallon ($3.36) costs 10.80% of the local average hourly wage ($31.13). Neighboring Denver is also in the top ten. However, Colorado gas prices are tied to the skiing season, when increased demand can push prices above the national average. New legislation requiring Colorado to use a reformulated gas that evaporates more slowly has reportedly failed to lead to the significant price hikes that some locals feared.
While Californian cities dominate among the least affordable for gas, in tenth place is the Pennsylvania city of Johnstown, where a gallon ($3.75) costs 20.04% of the average hourly wage ($18.73). Both gas prices and wages are significantly lower in Johnstown than in the Californian cities that accompany it on the table. The issues are tightly connected in Pennsylvania, which is America’s third-largest fossil fuel-producing state and maintains over 93,000 jobs in the oil and natural gas industry.
Simple Ways to Save Money on Gas
The affordability of keeping your tank full doesn’t just come down to price and wages. How (or even if) you drive makes a big difference. Here are three ways to keep your fuel costs low and support a healthy planet.
1. Reduce the weight you carry
Unnecessary luggage, that unused third row of seats and cargo boxes all make your car work harder. The EPA calculates that large roof-top cargo boxes reduce fuel economy by up to 17% on the highway. An extra 100 pounds might reduce your miles per gallon by 1% — adding around $0.04/gallon to your bill.
2. Learn what makes your vehicle hungry.
Gas can evaporate through a poorly sealed gas cap before your engine can even burn it. Improperly inflated tires make your car work harder. Accelerating fast and speeding guzzles up gas. Idling with the engine on for more than ten seconds uses more gas than just switching off the engine and starting up again when you’re ready.
3. Don’t drive today.
Use your car less by making one day a week your “no car commute” day, even if it takes more effort. Take public transport, get some exercise or sign up for a car share app to reduce the journeys your vehicle makes.
The past few years have shown how wildly gas prices can fluctuate — for better and for worse. You can’t control international oil industry trends. But by maintaining a conscientious approach to travel, you can make significant monthly savings — and take a little pressure off local lungs and the natural environment.
Methodology
First, we collected the average price per gallon in 2024 for states and cities from AAA.com. Next, we assessed affordability by calculating the percentage of each state/city’s local hourly salary needed to afford a gallon of gas, based on data from the U.S. Bureau of Economic Analysis.
For the major cities data, we ranked only cities above 500K population. For the overall cities ranking, we considered the 336 cities above 100K population.
The data was collected in October 2024.
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