Why does gas cost so much in oil rich areas of the United States?



  1. 0 Votes

    Alot of the cost of gas comes from taxes. If you look at the difference in distance, between NY and NJ, it is negligible when compared to the near 50cent/gallon difference in price. If a oil producing state taxes oil heavily, then the price will be high regardless of the states oil reserves.

  2. 0 Votes

    With a few exceptions, it’s unusual for the oil from a particular state to be sold in that state, so states’ reserves are irrelevant. The answer from benz is the best explanation for gasoline price differences. Perhaps next in importance is the cost added in refining when particular jurisdictions (California, Chicago, whatever) require particular blends for whatever reasons – that makes the price of gasoline higher for those jurisdictions.

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