States levy gas taxes and fees in multiple ways, making for a wide range of tax rates that can contribute—along with the distance from refineries and environmental regulations—to significant price disparities across state lines. For instance, tax rates are one reason California drivers pay, on average, $5.87 a gallon, over $2 more than Oklahoma motorists. While gas prices have fallen a little from their recent peaks, the national average on Tuesday was still $4.24 a gallon, about 70 cents higher than it was at the start of the Ukraine war less than a month ago, according to AAA. Sanctions and other deterrents to buying oil from Russia, a major producer, rocked the oil market, sending the price of gas and the oil it’s made from surging. Maryland waived gasoline taxes for 30 days, while Georgia suspended its gallon excise tax through May 31, according to the National Conference of State Legislatures. Other proposals would last longer, from six months in California and Missouri, to two years in Idaho, Illinois, and Indiana.Have a question, comment, or story to share? You can reach Terry at tlane@thebalance.com.
