High Gas Prices Drive Transit Ridership Growth

National gas average reaches $4.06, with regional prices ranging from under $3.50 to $5.89

Gas Prices Hit $4 Mark Amid Regional Gaps

Drivers across the United States are paying more than $4 per gallon for gas for the first time since 2022, with the national average reaching $4.06—up from $2.98 before the Iran conflict began. But the pain at the pump varies dramatically by region, with California motorists paying $5.89 per gallon while drivers in Oklahoma, Kansas, and Nebraska still pay below $3.50. The surge affects commuters' budgets differently depending on where they fill up, with state policies and infrastructure creating price gaps of more than $2 per gallon between the cheapest and most expensive markets.

State Taxes Drive Price Differences

State gas taxes are a major factor in price differences, ranging from 9 cents per gallon in Alaska to 71 cents in California, according to industry data. These taxes fund road maintenance and transportation infrastructure, but they create significant cost variations for drivers. Distance from refineries also affects prices, with most refinery capacity concentrated along the Gulf Coast where gas tends to be cheaper. States farther from major refining centers typically pay more due to transportation costs, while coastal states with direct pipeline access often see lower prices at the pump.

Environmental Rules Add Costs

Some regions require special reformulated gas to reduce smog, which adds to production and distribution costs beyond standard fuel blends. California's unique reformulated gas program is more stringent than federal requirements, with relatively few refineries producing the state's special blend. State taxes, fees, and environmental compliance costs added about $1.44 per gallon in California in March 2025, according to state regulatory data. Local market conditions, including the number of gas stations and traffic patterns, also influence pricing, with urban areas often seeing higher prices than rural communities due to real estate costs and demand patterns.

Inflation Concerns Mount

The OECD predicts the Iran war will push U.S. inflation above 4% this year, with energy costs playing a significant role in overall price increases. Transit officials in multiple cities said they're monitoring fuel costs closely as higher gas prices typically drive increased ridership on public transportation systems. The price surge comes as many Americans return to pre-pandemic commuting patterns, making transportation costs a larger share of household budgets than in recent years.

Transit Options Offer Relief

Higher gas prices are prompting more drivers to consider public transportation alternatives, transit officials said. Many transit systems offer monthly passes that cost less than filling a gas tank multiple times, particularly in regions where fuel prices exceed $5 per gallon. Riders can compare commuting costs and find transit options in their area using real-time trip planning tools. Moovit provides schedule information and route planning for public transportation systems nationwide, helping commuters evaluate alternatives to driving as fuel costs continue rising.