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Home Financial Planning Personal Finance

Analysis: Gas Costs (Not Just Pump Prices) Hit Some States Harder

by TheAdviserMagazine
3 hours ago
in Personal Finance
Reading Time: 7 mins read
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Analysis: Gas Costs (Not Just Pump Prices) Hit Some States Harder
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Pump prices started rising soon after the U.S. began airstrikes in Iran this year. But the price per gallon is just one component of a more important number — the total amount spent on gas.

To calculate the impact rising gas prices have on household budgets, the other variable needed is the amount of gas purchased, which can vary widely. The distance driven, the type of vehicle and driving conditions all play a role in how much fuel is used.

Average weekly estimated gas spending this spring increased anywhere from $7 to $26 compared to before the war in Iran began. Wyoming (+$26), Oklahoma (+$19), Montana (+$17) and Utah (+$17) topped the list of states where rising prices had the biggest impact on estimated weekly gas spending — bigger even than states with consistently higher gas prices, like California (+$8) and Washington (+$7).

Data: Weekly spending increases by state

Summary of overall findings

Our analysis shows that weekly gas expenditures have risen, on average, by at least $10 in 36 states since the end of February.

If sustained over one year, a $10 rise in weekly gas costs would result in $520 of additional spending, on average, per driver. For some households with multiple drivers, annual gas expenses could rise by more than $1,000 if higher prices hold.

Because these estimates are an average across an extended time period, they understate some weekly volatility. When gas prices were at their peak, in mid-May, the analysis showed that residents in 47 states were paying at least $10 more each week, on average, on gas compared to mid-February, and residents in 11 states were paying at least $20 more per week on average.

“While $10 a week might seem like a small amount, it quickly adds up over time. Given the financial pressure many households are already facing, an additional $520 a year in expenses is a burden to many households,” says Kimberly Palmer, personal finance expert at NerdWallet.

States where gas expenditures have risen most

Residents in Wyoming, Oklahoma, Montana and Utah have seen the greatest increases in weekly gas spending, on average, since February. Higher-than-average gas consumption amplifies price increases in these states compared to states where less gas is purchased.

Distance driven and fuel efficiency drive consumption. For example, four out of the five most common new vehicles sold in Wyoming in 2025 were pickup trucks: Ford F-150, Ford F-350 Super Duty, Chevrolet Silverado 1500 and the GMC Sierra 1500. The other vehicle was a Toyota RAV4. Wyoming drivers also rack up more than 22,000 miles per year, well above the national median of 14,700.

In contrast, many Californians offset some of the pain of higher pump prices by driving vehicles with higher fuel efficiency, and drivers put on about 12,000 miles per year, on average, which is less than the national median. Because the consumption side of the equation is low, they see a smaller jump in spending compared to many other states. Top 2025 models in California were: Toyota RAV4, Toyota Camry, Honda Civic, Honda CR-V and Tesla Model Y. (The Tesla wasn’t included in the consumption calculation for reasons outlined later on.)

How we measured the impact of rising gas prices

This analysis uses data about fuel efficiency, road use and vehicle preference to show the impact of rising gas prices in different states.

Fuel efficiency. We estimate average fuel efficiency by averaging the EPA’s miles-per-gallon rating of the most popular new cars in each state. Because this analysis uses a small number of vehicles to represent hundreds of models on the road, including EVs would overstate average fuel efficiency far more than excluding them would understate it. As a result, we exclude them.

Results. The output of the analysis is a dollar amount that represents the change in weekly gas costs per licensed driver in each state. The states with higher dollar jumps in the results are places where drivers are likely to experience more pain at the pump due to the combination of prices, fuel efficiency and distance traveled. 

These dollar amounts are directional indicators, useful for comparing conditions across states, but they aren’t precise calculations of actual spending.

For example, the roadway usage statistics don’t distinguish between resident and out-of-state drivers or personal and commercial vehicles on the road. While these figures aren’t the precise number of miles residents drove, they give a reasonable estimate about the states where residents likely put on the most mileage.

Conditions also vary within individual states. For example, Floridians in the panhandle pay prices that resemble prices in neighboring Alabama. Elsewhere in Florida, such as Miami, gas prices can be a dollar higher.

“ Higher prices at the pump impact drivers’ budgets differently, but there is strong evidence that these highly visible prices have a direct effect on overall economic sentiment, too. In this way, higher and higher gas prices can have a compounding economic impact. ”

Elizabeth Renter , Senior Economist

Gas prices are famously volatile. While there’s nothing you can do to change the price, there are steps you can take to lessen the impact of price changes.

Change your driving habits. When you step on the gas or slam on the brakes, you’re wasting gas — up to 30% at highway speeds and up to 40% in traffic, according to the U.S. Department of Energy. Similarly, speeding comes at a cost: Going 55 miles per hour instead of 50 can be like paying an extra $0.27 per gallon, if gas usually costs $3.83.

Consider the efficiency when buying your next vehicle. Say you’re choosing between two vehicles, and you plan to drive whichever one you choose for about 100,000 miles. One gets 20 miles per gallon, and the other gets 25. If you choose the one with the lower fuel efficiency, you’ll pay about $4,000 more in gas while you own it, assuming gas costs $4. Add that amount to the price of the car.

“Comparison shopping for gas prices with apps like GasBuddy or Upside can make it easier to save each time you fill up your tank. Opting into gas loyalty programs or using credit cards with gas rewards can also help. It might take some extra time and effort, but those savings are worth it,” Palmer says.
Methodology Methodology

Fuel consumption by state is based in part on the composition of vehicles in each state and the fuel efficiency of those vehicles. The top five new cars in each state across a 10-year period were used to calculate average mileage per gallon on both city and highway miles. Data about the most popular new cars in each state in 2016, 2019 and 2025 was provided by Experian. This doesn’t allow for the total variety of vehicles in each state, but provides a defensible snapshot of vehicle preferences across states and is therefore useful on a relative basis.To determine each vehicle’s fuel efficiency, we used ratings found in the fuel economy guides published by the U.S. Department of Energy.

Fuel consumption by state is based in part on average miles driven per driver. For miles traveled by state, we calculated miles driven on highway or city roadways based on 2024 data from the Federal Highway Administration’s Annual vehicle-miles of travel, 1980 – 2024, by functional system — national summary. Usage statistics include miles driven by out-of-state drivers, commercial drivers, etc., but provides a defensible snapshot of usage on a relative basis. The number of drivers per state was calculated using the Department of Transportation’s database of licensed drivers, vehicle registrations and resident population. The most recent year in this database is 2023.

Gas prices are based on data from AAA. Prices for each state were recorded in the middle of each week, from February 10 through June 24.

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About the author

Kurt Woock

Kurt Woock started writing for NerdWallet in 2021. Prior to joining NerdWallet, Kurt was a writer and educator for Colorado PERA, a retirement system for public employees. Before that he was a legislative editor for the Colorado General Assembly. Kurt has a B.A. from Valparaiso University and an M.A. in journalism from the University of Missouri-Columbia. He lives in Chicago.



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