A lot of factors can be involved in this issue. Many states have higher petroleum taxes than others. Some cities have to import their petroleum from longer distances and therefore have to pay more for transportation. Additionally, there are gas price trends are on the local level and these trends can impact prices.
Some states and local jurisdictions mandate particular gasoline blends, for various reasons, which are more expensive to make in the refineries. But tax differences are the greatest factor in gasoline price variations in the US, ranging from 6 cents to 52 cents per gallon. In addition to state excise taxes (flat rate per gallon), some states, or local jurisdictions, may add percentage sales taxes to gasoline sales — and obviously, 7% of $4 gasoline adds more than 7% of $2 gasoline. Other states may have zero sales taxes.
The biggest reason is taxes: federal taxes, excise taxes, and sales taxes. The federal tax is nation-wide, but the excise and sales taxes are determined by state governments. Some states even have municipal sales taxes which also change the cost of gas from city to city. Transportation, distribution, and production costs all play a part in the price of gas as well. Some areas where oil is drilled out of is harder to refine into gas, which also affects prices. See the link below for more info.
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