Gas Prices in Texas
Gas prices in Texas are some of the lowest in the country, even in a year when the whole nation is paying more. In the week of Oct. 12, 2026, regular averaged $3.78 a gallon in the EIA’s survey, about 55 cents below the U.S. average and down almost 10 cents in a single week. That’s still about $1.19 more than Texans paid a year earlier, though. Here’s why Texas stays cheap, how it compares with its neighbors, and where I’d look for extra savings.
Prices: EIA weekly data, updated automatically · By Nathan Brooks · Reviewed Oct. 15, 2026
Regular: EIA state average; diesel: EIA Gulf Coast regional average for the week of Sept. 21, 2026.
Why gas is cheaper in Texas
- Refineries next door. Texas and Louisiana have more refining capacity than any other part of the country. Gasoline made on the Gulf Coast doesn’t have to travel far to reach Texas pumps, and short trips mean lower delivery costs. When California has a refinery problem, prices jump; when Texas has one, there are usually other plants nearby to fill the gap.
- A low, flat gas tax. The state tax is 20¢ a gallon and hasn’t changed since 1991, and Texas doesn’t add sales tax on gasoline. Because it’s a flat amount, inflation has quietly made it one of the lighter gas taxes in the country.
- Lots of competition. Large chains and big travel centers compete hard on price along highways and in fast-growing suburbs. That competition probably matters as much as the tax: a station charging well above its neighbors in Texas loses customers fast.
Texas vs. neighboring states
| State | Regular (this week) | State gas tax | Tax vs. Texas |
|---|---|---|---|
| Texas | $3.93 | 20.0¢ | — |
| Oklahoma | $4.39 | 20.0¢ | same |
| Louisiana | $3.97 | 20.9¢ | +0.9¢ |
| New Mexico | $3.97 | 18.9¢ | −1.1¢ |
| Arkansas | $3.97 | 25.0¢ | +5.0¢ |
Prices: EIA weekly averages; states without their own EIA average show their region’s average (Oklahoma is counted in the Midwest region; Louisiana, New Mexico and Arkansas in the Gulf Coast region), so real border differences can be bigger or smaller. Taxes: Tax Foundation, July 1, 2026 (state taxes and fees, excluding the 18.4¢ federal tax).
Cheap, but not cheaper than last year
Texas had one of the biggest drops in the country in the week of Oct. 12, and Houston was even lower than the state average at $3.76. If you live here, the main thing to remember is that cheap is relative. A 15-gallon fill-up costs about $8 less than the national average, but roughly $18 more than it did a year ago.
I wouldn’t rush to fill up while prices are drifting down. Use the cheap days of the week and a rewards program you already have. The one place Texans tend to overpay is on the road: stations at airport exits and busy interstate interchanges often charge noticeably more than stations a mile away. If you’re planning a holiday drive, the gas trip cost calculator will show what it’ll cost. — Nathan Brooks
What to watch next
Holiday travel. Busy travel weeks can push up prices at interstate stations, so fill up in town before a long drive. Gulf Coast refinery news is the other thing to watch; Texas prices react to it quickly.
Best ways to save on gas in Texas
- Kroger fuel points in Houston, Dallas–Fort Worth and other areas with Kroger stores (100 points = 10¢ off per gallon). If you already shop there, this is the easiest discount to stack. How Kroger points work.
- Tom Thumb, Randalls and Albertsons “for U” rewards turn grocery points into cents off per gallon at participating stations. Worth checking in the app before every fill-up.
- Walmart+ at Walmart and Murphy USA stations, which are common across Texas. If you already pay for Walmart+, the gas discount is a nice extra; I wouldn’t buy it for gas alone without running the numbers. Compare Walmart+ with club memberships.
- Sam’s Club and Costco in the big metros, where club pumps often undercut nearby stations. Sam’s Club gas guide.
- Skip the priciest spots. Stations right at airport exits and busy interstate interchanges often charge more than stations a mile away. A short detour is usually worth it. Find stations near you.
Programs and terms are set by each company and can change. Check the official site or app before you sign up.
Propane in Texas
Here’s a twist: gas is cheap in Texas, but home propane isn’t. In the first week of the EIA’s winter survey (Oct. 5, 2026), Texas averaged $3.10 a gallon, about 50 cents above the U.S. average of $2.60. Last March it was $2.99. If you heat with propane, don’t assume Texas prices will be low just because the pump is. Check your tank, get a few quotes, and ask about pre-buy or budget plans before the cold arrives. You can compare Texas with other states on our propane prices by state table.
- Grill and RV tanks: where to refill propane and exchange vs. refill.
- Home tanks: tank sizes and how long a tank lasts, and a fill-up cost calculator.
- Help with heating bills: Texas energy assistance (TDHCA) can help eligible households pay for heating fuel, including propane.
Quick answers
Why is gas so cheap in Texas?
Texas is next to the country’s biggest refining center on the Gulf Coast and has a low state gas tax of 20¢ a gallon, unchanged since 1991.
What is the gas tax in Texas?
20¢ a gallon in state tax, plus the 18.4¢ federal tax. Texas doesn’t charge sales tax on gasoline.
Is gas cheaper in Texas than in Oklahoma?
Both states charge 20¢ a gallon in state gas tax, so differences near the border come from local competition and distance from refineries. Compare actual stations before you fill up.
Keep saving
Sources
EIA Gasoline and Diesel Fuel Update · Tax Foundation: state gas tax rates (July 1, 2026) · EIA weekly residential propane prices · Texas Comptroller: motor fuel taxes · Texas energy assistance (TDHCA)
FuelPriceScout is an independent information site. We don’t sell fuel and we’re not affiliated with any gas station, retailer or rewards program mentioned here. Prices are averages from public sources and are not what a specific station charges; program terms can change, so always check the official site before you sign up. How we get our data.