Texas gas prices are consistently among the lowest in the United States — a fact Texas drivers appreciate during every fill-up. Consequently, the combination of Gulf Coast refinery proximity, a relatively low state gas tax, and strong regional fuel supply keeps Texas gas prices below the national average in most market conditions. This guide covers Texas gas prices, the state gas tax, why Texas pays less than most states, and the best tools for finding the cheapest gas near you.
Texas Gas Prices Overview
Texas typically ranks among the five to ten states with the lowest average gas prices in the country. Furthermore, Texas’s status as the largest oil-producing state in the US and home to the largest concentration of petroleum refining capacity on the Gulf Coast creates structural advantages that keep fuel prices lower than the national average. As a result, even during national price spikes driven by global oil markets, Texas gas prices usually track below the US average by a meaningful margin.
Texas State Gas Tax
Texas charges a state motor fuel tax of 20 cents per gallon on gasoline and diesel. Furthermore, the federal motor fuel tax of 18.4 cents per gallon applies on top of the state tax, creating a combined base tax of approximately 38.4 cents per gallon before local fees. In contrast to high-tax states like California where state gas taxes exceed 60 cents per gallon, Texas’s 20-cent rate is among the more driver-friendly in the country. As a result, Texas drivers save a meaningful amount per gallon compared to motorists in high-tax states filling up at equivalent pump prices.
Why Texas Gas Is Cheaper Than Other States
- Gulf Coast refinery proximity: Texas has the highest concentration of petroleum refining capacity in the US — reducing transportation costs to get refined fuel to Texas gas stations
- Low state gas tax: Texas’s 20 cents per gallon is well below the national median state tax
- Strong regional supply: Multiple refineries competing in the same market keeps wholesale fuel prices competitive
- No state income tax: Texas’s overall tax structure means the state does not rely as heavily on gas tax revenue as some other states
- Major oil production: Texas produces more oil than any other US state through Permian Basin and other production, supporting regional supply
How to Find the Cheapest Gas in Texas
Several tools make finding cheap gas in Texas easy. GasBuddy is the most widely used app — it crowdsources real-time gas prices from drivers and shows a map of stations sorted by price near your location. Furthermore, Waze and Google Maps both display gas prices on nearby stations when you search for gas. As a result of these free tools, spending a few seconds checking prices before filling up can save meaningful amounts over months of driving, particularly if you live near a price boundary between lower and higher-cost areas.
Cheapest Gas Station Types in Texas
Warehouse clubs including Costco and Sam’s Club consistently offer the lowest gas prices in their local markets — typically 5 to 15 cents below nearby competitors. Furthermore, HEB fuel stations offer competitive pricing and accept HEB Rewards points for additional savings. Gas stations located on high-traffic corridors with multiple competitors nearby also tend to price more aggressively than isolated stations. As a result, a brief detour to a warehouse club or HEB fuel station before a long drive can generate meaningful savings.
Frequently Asked Questions
What is the average gas price in Texas?
Texas typically has some of the lowest gas prices in the United States due to its proximity to Gulf Coast refineries, low state gas tax, and strong refining capacity. Average Texas gas prices fluctuate with national oil markets but frequently run 10 to 20 cents below the national average.
Does Texas have a state gas tax?
Yes. Texas has a state motor fuel tax of 20 cents per gallon — one of the lower state gas taxes in the country. The federal gas tax of 18.4 cents per gallon also applies, making the combined base tax approximately 38.4 cents per gallon before any other fees.
Where can I find the cheapest gas in Texas?
Find the cheapest gas in Texas using apps including GasBuddy, Waze, or Google Maps which crowdsource real-time gas prices from drivers. Costco, Sam’s Club, and HEB gas stations frequently offer the lowest prices in their local markets.
What is the gas tax in Texas compared to other states?
Texas’s 20 cents per gallon state gas tax is among the lower state taxes in the country. In contrast, California’s state gas tax exceeds 60 cents per gallon, and many northeastern states have taxes above 40 cents per gallon. As a result, Texas drivers pay significantly less in state taxes on each gallon than most other Americans.
Why are gas prices lower in Texas than other states?
Texas gas prices are lower due to the state’s proximity to Gulf Coast refineries (reducing transportation costs), the relatively low state gas tax of 20 cents per gallon, and strong regional refining capacity that keeps fuel supply high in the state.
Explore more Texas consumer guides in our Texas Guide. You can also read our Texas Toll Tag guide for another Texas driver resource. Additionally, our Texas Car Registration guide covers annual vehicle registration renewal information.
