Blue states pay 55 cents more per gallon than Red states: Report

Theory Briefing

• A new IER report finds blue states averaged $3.69 per gallon in 2024 versus $3.14 in red states, a 55-cent difference.
• The report attributes the gap to decades of layered state taxes and regulatory policies rather than market forces alone.
• The finding fuels a broader debate over whether high-tax energy policy protects the environment or simply burdens working-class drivers.
• The 55-cent gap compounds over time — a daily commuter filling up weekly could pay hundreds of dollars more per year in a blue state.