America’s Tax Refunds Vanish At The Pump—10 States Where Americans Pay The Most For Gas

One month ago, the average price to fill up was $2.98 per gallon. Iran shut down the Strait of Hormuz, disrupting one-fifth of the world’s oil supply. The average price at the pump climbed to $4.02 in just 30 days.

For the first time since September 2023, every state now faces prices above $3.00. Stanford economists estimate the typical household will pay $740 more for gas this year. This increase nearly cancels out the $748 tax refund boost most families expected. The pump swallows the refund whole.

10: Utah — $4.20/gallon

Utah does not have the highest prices in the country. However, no other state has experienced such a rapid increase. One month ago, a gallon cost $2.79 statewide. Now it is $4.20—a 50.5% jump in just 30 days, unmatched anywhere else.

Utah refines much of its own fuel, but the state has the Mountain West’s highest gas tax at 38 cents per gallon, which compounds the spike. In Beaver and Grand counties, prices have already passed $4.28.

9: Illinois — $4.20/gallon

Illinois comes in at $4.20 per gallon. In Cook County, drivers pay some of the highest combined gas taxes in the country, with state and local levies that can exceed 85 cents per gallon. Illinois’s central role in U.S. freight routes means the local diesel price, now $5.15 per gallon, drives up the cost of goods throughout the Midwest.

For commuters, the impact is clear: a 15-gallon fill-up that cost $45 in late February now costs over $63, an increase of $18 at each visit to the gas station.

8: Idaho — $4.27/gallon

Idaho’s $4.27 average per gallon highlights the impact of geography. Most people in Idaho rely on cars, with towns separated by long distances and public transit nearly nonexistent. When gas prices spike, alternatives are limited. Idaho’s prices are affected by West Coast refinery costs, but wages remain lower than in coastal states.

Diesel, which powers farms and trucks, has risen to $5.51 per gallon. This increase leads to higher prices for food and other shipped goods.

7: Alaska — $4.59/gallon

Alaska produces more oil than most countries, yet drivers pay $4.59 per gallon. Global energy markets determine prices, regardless of local production. Most of Alaska’s oil is shipped out for refining, and gasoline returns at world market prices.

The state’s vast distances require fuel to be transported by barge, truck, or pipeline, increasing costs. Diesel is now $5.64 per gallon, putting additional pressure on rural communities where fuel was already expensive.

6: Arizona — $4.68/gallon

Arizona’s $4.68 per gallon reflects high dependence on cars in cities like Phoenix and Tucson. These cities have limited public transit, and summer heat makes walking or biking impractical.

Arizona shares its refineries with California, where about a fifth of capacity has recently shut down or is slated for closure, tightening supplies. Diesel now costs $6.00 per gallon. Commuters driving long distances across Phoenix’s suburbs may spend hundreds of extra dollars each month, a strain on many households.

5: Nevada — $4.93/gallon

Nevada’s average price has surpassed $4.93 per gallon, and some Las Vegas stations charge more than $5.00. Nevada has no refineries and relies entirely on California and Utah for gasoline. The supply chain is now strained by war and refinery shutdowns in the West.

AAA Nevada spokesperson John Treanor noted that prices typically rise in spring, but this increase is “directly related to what’s going on in Iran right now.” Diesel has reached $6.16, increasing costs for trucking companies that supply casinos and resorts.

4: Oregon — $4.93/gallon

Oregon’s average price is $4.93 per gallon. Oregon depends on West Coast refineries, many of which have reduced capacity following plant closures in California.

The ongoing conflict in the Middle East has driven crude prices sharply higher, compounding the supply pressure. Stations around Portland are nearing $5.00 per gallon, and diesel is up to $6.08. This rise is a major challenge for timber, farming, and fishing industries throughout Oregon.

3: Washington — $5.35/gallon

Washington’s average price is $5.35 per gallon. Washington has one of the highest gas taxes in the country at over 55 cents per gallon. The state also faces tight West Coast refinery supplies following recent plant closures in California. Premium gas is over $5.84, and diesel is up to $6.61.

These increases affect Seattle commuters, the state’s ports, and the Pacific trade corridor, leading to higher prices for imported goods.

2: Hawaii — $5.45/gallon

Hawaii’s $5.45 per gallon makes it the second most expensive state in the nation. The islands have limited refining capacity and must import most of their fuel, making Hawaii especially vulnerable to global oil price shocks. Shipping fuel across the Pacific adds significant cost.

Diesel has reached $6.69 per gallon. On Kauai, prices are even higher, averaging $5.57 per gallon. For residents who already face among the highest costs of living in the country, the spike deepens an existing affordability challenge.

1: California — $5.89/gallon

California has the highest prices at $5.89 per gallon, nearly two dollars above the national average and about 80% more than the cost in Oklahoma. The state lost about 17% of its refining capacity after Phillips 66 closed its Los Angeles-area plant and Valero announced it would shut down its Benicia refinery by April 2026, a factor that intensifies the current crisis.

Diesel has reached $7.46 per gallon. A driver covering 12,000 miles a year now spends about $2,826 on gas, up from $2,203 before the war. This $623 increase can eat into a tax refund or force families to reconsider summer plans.

Sources:
AAA — State Gas Price Averages — March 31, 2026
Business Insider — States Where Gas Prices Have Risen Most Since the Start of Iran War — March 29, 2026
Fortune — How Rising Gas Prices Are Wiping Out Americans’ Tax Refund Gains — March 29, 2026
Politico — Gas Prices Threaten to Become Political Liability as EIA Revises 2026 Forecast — March 2026
KATU News — Fourth Week of US-Israel War in Iran Sends Oregon Gas Prices to $4.89 — March 29, 2026
Los Angeles Times — Gasoline Price Gouging in California Draws a Warning — March 20, 2026