Which State Has The Lowest Gas Prices – The good news is that 2019 started with relatively low gas prices. The oversupply of oil in the world market leads to a continuous decrease in the price of fuel. In early January, the national average gas price is $2.25, actually the lowest price for this time of year since 2016.
In the United States, prices began to decline in October and have continued to decline slowly since then. Of course, gas prices vary by region, but overall, they’re cheaper than they were in 2018.
Which State Has The Lowest Gas Prices
Many drivers are taking advantage of these lower prices compared to last summer, when gas prices were at their highest level in four years. Now the question remains, will these low prices continue and what factors determine the price of natural gas?
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There are several factors that affect the price of gasoline, including taxes, distribution, refining, and the cost of crude oil. Crude oil prices, which make up the bulk of the final price consumers pay for gasoline, fell sharply last fall, in part because rising U.S. production led to an oversupply of oil.
Crude oil prices have been rising slowly since the beginning of the year, which is starting to push up natural gas prices. However, overall demand has been weak recently, which is helping to build inventories and lower natural gas prices despite rising crude oil prices.
The national average gas price is currently $2.25 and you can see the average price by state as of January 2019 in the chart below.
You might be wondering why gas is so expensive in California ($3.25) compared to Oklahoma, which has the lowest price ($1.85)? According to the US Energy Information Administration (EIA):
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“In addition to differences in state and local taxes, other factors contribute to regional differences in gasoline prices, including distance from supply, supply disruptions and retail competition and operating costs.”
“Gasoline prices in California are higher and more volatile than prices in other states because relatively few sources of supply offer the unique blend of California gasoline out of state. California’s gasoline remanufacturing program is more stringent than the federal government’s program. In addition to the higher cost of this cleaner fuel, state gasoline taxes in California are higher than in most states.”
California is one of 17 states that use reformulated gasoline (RFG), which is blended to burn cleaner than regular gasoline and reduce toxic air pollutants that cause smog. RFG is required in cities with high smog levels and optional elsewhere. New York, Connecticut and other states that use RFG tend to have higher natural gas prices.
The IRS sets a standard mileage reimbursement rate each year so that employees, contractors, and employers can use it for tax purposes. This number varies from year to year and applies to cars, trucks and vans. For 2019, the rate is 58 cents per business mile (up from 54.5 cents in 2018).
Gas Prices Today: How Much Is Gas In My State? How Does It Compare?
However, the federal standard mileage rate is only a recommendation, and businesses may reimburse employees for business mileage at the employer’s option. Whether you use the standard IRS rate or a higher/lower rate may be based on average gas prices in your area. For example, if you do business in a part of the country where natural gas is more expensive, you may need to raise your price. If the company chooses to use a rate that exceeds the federal standard, the additional income will be taxable to the employee, which is important to consider.
Alternatively, if your business operates in a state that has lower gas prices than the national average, you may consider reducing your reimbursement rate. The standard mileage rate is based on varying national averages, so is not suitable for all different areas of the country.
Whether your employees use the standard IRS charge, your company reimbursement rate, or neither, and simply deduct the actual cost of using their vehicles, this is the app to use to track business mileage for both companies and and for the self-employed. are employed.
It uses GPS to automatically track each drive and calculates an instant deduction based on mileage. In addition to simply swiping right for business and left for personal travel, Mileage Monitor also logs mileage and compiles data into IRS-compliant reports that can be downloaded for payroll and sent to your accountant when it’s time preparation. accounts.
Most And Least Expensive States To Buy Gas
This means you can track the financial picture of your entire business as fast as you can track a mile. Simply take a photo of your receipts for tolls, parking or other expenses and store them securely in the cloud. You can link your credit card or bank account directly to automatically track spending.
Add convenience and ease to your business accounting and learn how it can save you and your employees a lot of time and hassle when it comes to tax deductions.
We help people save time and money. We are on a mission to empower mobile workers and businesses. This sometimes forces us to generalize tax information. Team members are not certified tax professionals. If you need help with a specific tax situation, contact your tax professional.
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