Gas prices in America vary a lot from place to place—but so do people’s wages—meaning how affordable a gallon of gas is depends on where you live. A new analysis from CashNetUSA found that gas prices in Arizona make it one of the least affordable states for gas in America, where a gallon of gas costs 15.14% of the local hourly wage.

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A new study from CashNetUSA compared the average price of gas per gallon in each state against the local hourly earnings to reveal which states have the most and least affordable gas: https://www.cashnetusa.com/blog/cheapest-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 at CashNetUSA has taken a deep dive into how affordable gas is nationwide right now. They compared the average price of a gallon against the local average hourly wage in every state and medium-large city in America.

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.

● The most affordable state for gasoline is Massachusetts, where a gallon of gas costs just 11.75% of the local hourly wage.

● 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.