Why do gasoline prices vary so much from state to state?

Retail gasoline prices have skyrocketed so far this year, as the price of crude oil has surged.

And while many are feeling the pain at the pump, Americans are seeing widely divergent gasoline prices depending on where they live.


Why are drivers in Fort Collins, Colo., paying a little over $3, while those in Santa Barbara, Calif., are seeing gas prices at $4.33 a gallon?

Colorado, Montana, Utah and Wyoming have the cheapest pump prices in the country, at about $3.21 a gallon or less on average, while retail gasoline prices are near $4.30 a gallon in California and are over $4 in some parts of New York.


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