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Texas now has the cheapest gas prices in the country, per AAA data

Gas Prices
Posted at 6:17 PM, Aug 05, 2022
and last updated 2022-08-05 19:17:33-04

Texas now has the cheapest average gas prices in the country, according to AAA Texas.

As of Friday, the average gas price in the state stood at $3.62 for regular fuel. The national average stood at a little over $4.11.

Experts credit the state's refineries, regulations, and low fuel tax rates for the faster drop than many states across the country.

"We have a very good pipeline system from refineries on the Gulf coast to various markets across Texas," explained Waco economist Ray Perryman. "We have a better mechanism, in some cases, to get the oil to Texas."

Texas has a gas tax rate of 20 cents per gallon, much lower than many states across the country. Those funds directly contribute to infrastructure and education within the state.

Lt. Governor Dan Patrick recommended suspending the gas tax until the end of 2022 back in July after the state comptroller announced a $26.9 billion budget surplus.

Perryman said the suspension could have detrimental effects unless the state replaces the lost funding with money from the surplus.

While a gas tax suspension has not been enacted in the state, drivers are still welcoming the drop in prices.

"It would be nice if it hit that $1.99, $2 that it was years back but this is a great trend," said Asha Smiley, who was purchasing gas in Waco on Friday.

To track gas price trends across Texas, visit the AAA Gas Price tool online.