If your family has been wincing at the gas pump lately, you’re not imagining things. Gas prices vary wildly across the country, and understanding why can actually help you plan smarter and spend less.

Here’s the short answer: four factors drive what you pay per gallon. The U.S. Energy Information Administration breaks them down as the cost of crude oil, refining costs, distribution and marketing, and taxes. Each one hits your wallet differently depending on where you live, and the differences can be staggering.

Crude oil is the biggest piece of the puzzle, accounting for roughly half of what you pay at the pump. When crude supply tightens, everyone feels it. The closure of the Strait of Hormuz pushed crude past $100 a barrel, sending prices higher across the globe. That part you can’t do much about. The other three factors, though, are where your zip code really starts to matter.

Refining costs run about 15 percent of your total gas price. States that require seasonal fuel blends to meet air quality standards pay more to produce that gas. California is a prime example. It mandates a special blend that only a handful of refineries can make, which limits supply and pushes prices up. When a refinery goes down for maintenance or repairs, there’s no easy substitute. Prices spike fast, and they don’t come back down quickly.

Distribution is another 16 to 18 percent of the cost. If you live far from oil sources or in a geographically isolated spot, getting gas to your local station just costs more. Hawaii and Alaska feel this hard. Fuel has to travel by ship, and that expense gets passed straight to you at the counter.

Then there are taxes. The federal government charges 18 cents per gallon on gasoline. On top of that, states average another 33.55 cents per gallon, according to the Institute on Taxation and Economic Policy. That number shifts a lot by state. Twenty-four states charge a fixed tax per gallon, while 26 states charge a variable rate tied to fuel prices. Of those, 18 states fold in transportation costs when calculating that variable rate. Some states also tack on levies for inflation, infrastructure, and vehicle emissions programs.

Put it all together, and the gap between states gets wide in a hurry. According to World Population Review, the four most expensive states for gas in 2026 are California, Hawaii, Washington, and Oregon. Nevada and Alaska round out the top six. Every single one sits in the West.

One Family Handyman contributor described pulling up to two side-by-side stations in Central California and seeing a price difference of 80 cents per gallon between a Chevron at $6.29 and a Great Gas station at $5.49. Drive 400 miles north into Oregon, and the average drops to around $5.00 per gallon. Head east far enough, and you’ll find prices below the national average of $4.16, per AAA.

So what can suburban families actually do with this information?

Quite a bit, honestly.

First, don’t assume the brand-name station on your corner is your only option. Warehouse clubs like Costco frequently undercut nearby competitors by a meaningful margin. Apps that track local prices in real time can save you real money over the course of a year, especially if your family is running multiple vehicles to school, sports, and work.

Second, timing your fill-up matters. Prices tend to climb ahead of holiday weekends when demand spikes. If you can fill up mid-week rather than Friday afternoon, you’ll often pay a few cents less per gallon. Small savings, yes, but they add up across dozens of fill-ups.

Third, if you’re in a state with high refining requirements, stay tuned to local news in late spring. That’s when seasonal fuel transitions happen, and supply crunches are most common. Having a full tank going into those weeks costs you nothing extra but protects you from the worst price surges.

“People love to blame the President when gas prices spike,” said NPR’s Business Desk, which has covered the topic extensively, “but the President has very little control over gas prices.” It’s an uncomfortable truth for anyone who wants a simple villain in the story, but understanding the real levers means you can actually respond to them.

Your commute isn’t going anywhere. But a few smart habits, a good price-tracking app, and a basic understanding of what’s actually driving costs can take some of the sting out of every trip to the pump.