A Gallon Of Gas In Texas: The Price Divide
A Gallon of Gas in Texas: The Price Divide
As of May 31, 2026, the average price for a gallon of regular unleaded gas in Texas is $4.02, up 5.98% from last month ($3.793) and 41.35% year-over-year from $2.844. AAA Texas reports the statewide current average at $3.883 per gallon for regular, with diesel at $4.919. This price volatility reflects heightened crude oil markets and Strait of Hormuz supply concerns driving a 25-cent weekly spike in late April 2026.
Current Texas Gas Prices by Fuel Grade (May 31, 2026)
| Fuel Grade | Current Average (USD/gal) | Week Ago | Month Ago | Year Ago |
|---|---|---|---|---|
| Regular Unleaded | $3.883 | $4.090 | $3.781 | $2.751 |
| Mid-Grade | $4.371 | $4.575 | $4.253 | $3.212 |
| Premium | $4.734 | $4.937 | $4.626 | $3.568 |
| Diesel | $4.919 | $5.057 | $4.979 | $3.048 |
Data sourced from AAA Texas fuel price tracking.
Regional Price Variations Across Texas
Texas exhibits significant intra-state price divides driven by refinery density, transportation costs, and local demand. Major metropolitan areas show distinct pricing patterns:
- El Paso: Highest statewide average at $4.62/gal (regular), driven by border-region logistics
- Houston-The Woodlands-Sugar Land: $3.715/gal (Apr 2026), benefiting from refinery proximity
- Corpus Christi: ~$2.86/gal as of November 2024, reflecting coastal refinery access
- East Texas (Tyler-Longview): Recently reported at $3.85/gal amid Strait of Hormuz spike
This geographic arbitrage creates procurement advantages for fleets operating near Gulf Coast refining hubs.
Market Drivers Behind Texas Gas Price Movements
- Strait of Hormuz Uncertainty: Geopolitical tension in April 2026 triggered a 25-cent weekly spike to $3.85/gal statewide
- Record Texas Crude Production: October 2024 saw 5.9 million barrels/day (all-time high), up 4.8% year-over-year, supporting supply but not fully offsetting refinery constraints
- Brent Crude Surge: Brent climbed from $1.80/gal (late Dec 2024) to $1.97/gal (Jan 13, 2025), transmitting upstream costs to retail
- Seasonal Demand Shifts: Summer driving season typically adds 5-10 cents/gal as refiners switch to reformulated gasoline blends
- Diesel Premium Expansion: Diesel now trades at $4.919/gal, $1.036 above regular, reflecting commercial freight demand
These upstream downstream dynamics directly impact LNG competitiveness in the Texas energy mix.
Texas Gas Prices vs. National Average
Texas historically trades below the U.S. average due to abundant local production and refining capacity, though the gap narrowed in 2026:
| Metric | Texas (May 2026) | U.S. National Average | Difference |
|---|---|---|---|
| Regular Gasoline | $4.02/gal | ~$4.15/gal | -$0.13/gal |
| Year-over-Year Change | +41.35% | +35.2% | +6.15 pp |
| Refinery Utilization | 92.4% | 89.1% | +3.3 pp |
Texas maintains a structural cost advantage despite recent volatility.
Implications for LNG Market Competitiveness
Rising gasoline prices enhance LNG substitution economics for fleet operators and industrial users. At $4.02/gal gasoline, equivalent natural gas energy cost parity occurs at approximately $2.10/MMBtu for compressed natural gas (CNG), while LNG-powered heavy-duty trucks achieve 20-30% fuel cost savings versus diesel at $4.919/gal. Texas's Gulf Coast LNG export terminals (including Corpus Christi, Freeport, and Sabine Pass) benefit from integrated refinery-pipeline infrastructure, creating arbitrage opportunities between domestic transportation fuel markets and export LNG pricing.
"Texas oil production increased in October while retail fuel prices ticked up slightly at the beginning of 2025," notes the Federal Reserve Bank of Dallas, highlighting the production-price decoupling characteristic of mature hydrocarbon basins.
Helpful tips and tricks for How Much Is A Gallon Of Gas In Texas Now
How much is a gallon of gas in Texas right now?
The current average price for regular unleaded gasoline in Texas is $3.883 per gallon (AAA Texas), with the broader retail market reporting $4.02/gal for May 2026.
Why are gas prices in Texas so volatile in 2026?
Prices spiked 25 cents in late April 2026 due to Strait of Hormuz supply uncertainty, while year-over-year gains of 41.35% reflect Brent crude increases and seasonal demand.
Which Texas city has the cheapest gas?
Houston-The Woodlands-Sugar Land offers the lowest major-metro price at $3.715/gal (Apr 2026) due to refinery density, while Corpus Christi reported ~$2.86/gal in late 2024.
Which Texas city has the most expensive gas?
El Paso has the highest statewide average at $4.62/gal for regular unleaded, driven by border-region transportation costs.
How does Texas gas price compare to last year?
Texas gas is 41.35% higher year-over-year, rising from $2.844/gal (May 2025) to $4.02/gal (May 2026).
Is diesel more expensive than gasoline in Texas?
Yes, diesel averages $4.919/gal versus $3.883/gal for regular gasoline, a $1.036 premium reflecting commercial demand.
