Texas Gas Prices and Why They Are What They Are
Prices as of September 04, 2026, per AAA · Updated September 04, 2026
As of September 04, 2026, regular gasoline in Texas averages $3.69/gallon (the 2nd-lowest in the U.S.), per AAA — 0.38 below the national average of $4.07. Diesel averages $5.46. State fuel taxes and fees add 20.0¢/gallon on top of the 18.4¢ federal excise.
Where the $3.69 goes
| Component | $/gallon | Share | Source |
|---|---|---|---|
| Crude oil (national cost, WTI August 2026) | 2.00 | 54% | EIA |
| Federal + Texas fuel taxes (18.4¢ + 20.0¢) | 0.38 | 10% | Tax Foundation |
| Refining, distribution, margins & embedded program costs (residual) | 1.31 | 36% | computed |
Crude oil costs every state's refiners roughly the same, so Texas's position comes from the tax line and the residual: refining capacity and logistics, fuel-specification requirements, and any carbon or clean-fuel program costs embedded in the pump price.
State policies that show up at the pump
| Policy | Detail |
|---|---|
| Cap-and-trade on motor fuel | No |
| Low Carbon Fuel Standard | No |
| State-only fuel blend | No |
| Federal RFG areas | Yes (Houston, DFW) |
| Refinery count | 28 (most in U.S.) |
| Pipeline access | Yes |
| Crude oil producer rank | #1 in U.S. |
State government control
| Control today | Unified Republican (Governor + House + Senate, all R) |
| Years of unified Democratic control, 2001–2025 | 0 |
| Years of unified Republican control | 23 |
| Years of divided government | 2 |
Fuel-tax levels and fuel-specification programs are set by legislatures and governors; the national comparison shows average prices and taxes grouped by state control.
Compare: all states ranked · Texas electricity rates · gasoline prices by country
Sources: AAA (pump prices, updated daily; the industry-standard 50-state series), Tax Foundation (2026 state fuel taxes), EIA (WTI crude). The residual is computed, not reported. See methodology.