For 2017, the highest average gas prices in the nation were in the west coast states plus Alaska and Hawaii. Gas prices were generally more expensive in the north and northeast than in the southern states.
The average person drives roughly about 12,000 miles per year. With the constant fluctuation of gas prices this can become a costly burden on those whose main source of transportation is their car. In 2017, gas prices range from $2.12 per gallon to $3.02 per gallon. These two endpoints represent the lower and upper limit of gas price by state in the United States for 2017. The state with the lowest January 2017 gas price is South Carolina (at $2.12 per gallon). Hawaii on the other hand has the highest January 2017 gas price at $3.02 per gallon. The difference amounts to about 90 cents. This is the actual range of gas price by state. The difference may be small, but in fundamental terms, this may be due to variations in price valuation. In actual terms, this implies that the January 2017 gas price for Hawaii is 42.45% more expensive compared to that of South Carolina.
In other words, consumers have to shell out an additional 90 cents in Hawaii to purchase a single gallon of gasoline – that same amount could have been used to purchase 42.45% more gallon in South Carolina. California has the second highest January 2017 gas price at $2.78 per gallon. Even then, gas in Hawaii is at least 8.6% more expensive compared to California.
Why does Hawaii have the highest gas price among the 50 states? According to Hawaii News Now, Hawaii lags behind the mainland when it comes to lowering gas prices. There are three factors why gas prices in Hawaii are among the highest in the country. The first one is its remote location. It costs a lot of money to bring gas in barges to remote locations (Kim, 2008). The second factor is poor competition. There is less competition in Hawaii as far as petroleum products are concerned. When competition is minimal, prices rarely go down. The third factor is the strong demand for gasoline (Kim, 2008). Demand for gas in Hawaii has remained strong in recent years which generally pushes prices to be higher.
Source Cited: Kim, L. (2008, Aug. 22). Why are Hawaii gas prices higher than the mainland’s? Hawaii News Now. Retrieved from https://www.hawaiinewsnow.com/story/8888311/why-are-hawaii-gas-prices-higher-than-the-mainlands/ on February 11, 2020.