Why Texas Has Cheap Gas
While the rest of the country pays near $5/gal, Texas typically runs $0.30–$0.60 below the national average. Several structural advantages make this possible:
One of the lowest state fuel taxes in the US. California charges 57.9¢. The national average state tax is ~32¢.
Texas is home to the US Gulf Coast refining complex — the largest in the world. Minimal transportation costs from refinery to pump.
Texas uses standard gasoline blends. No CARB requirements or reformulated fuel mandates that would raise refining costs.
Texas has one of the highest densities of gas stations per capita, which creates intense price competition and keeps retail margins razor-thin.
Texas in the 2026 Crisis
Even with the Hormuz closure driving crude oil above $127/barrel, Texas gas prices peaked around $4.54/gal in April 2026 — roughly $0.40 below the national average at the same time. This structural discount held firm throughout the crisis because Texas's advantages are baked into the cost structure, not dependent on global crude.
If the April 2026 ceasefire holds and Brent crude falls back toward $90–$95/barrel, Texas prices could return to $3.80–$4.10/gal — levels last seen before the February 2026 crisis began.
Texas vs. the National Average
Historically, Texas trades at a $0.25–$0.45 discount to the national average. During refinery outages or regional supply disruptions, this discount can temporarily narrow — but Texas has never traded at a premium to the national average in the post-2010 era.
Compare all states side by side on our gas prices by state page, or see our 2026 price forecast for where prices are headed nationally.