Ever pulled up to a pump in Dallas and then driven three hours to a small town only to realize you’re paying twenty cents more? It's weird. You’d think the "Energy Capital of the World" would have one flat, cheap rate, but Texas gas prices are a moving target.
Right now, if you're asking how much is gasoline in Texas, the answer is sitting at a state average of roughly $2.40 per gallon for regular unleaded as of mid-January 2026. That’s a decent chunk lower than the national average, which is hovering closer to $2.80. Honestly, we’ve seen worse. Much worse.
But that average doesn't tell the whole story. You've got folks in San Antonio seeing signs for $2.27, while drivers out in El Paso are consistently shelling out closer to $2.63. It’s a massive state, and the logistics of moving fuel from the Gulf Coast refineries to the high desert of West Texas basically dictates your receipt total.
Why Prices Vary So Much Across the Lone Star State
Location is everything. If you’re near Houston or Beaumont, you’re basically sitting at the source. The Gulf Coast is packed with refineries, so the "transportation cost" part of your gas bill is negligible.
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Then you have the El Paso anomaly. Because El Paso isn't hooked up to the same pipeline infrastructure as the rest of the state, they often get their fuel from refineries in New Mexico or even California. When those refineries have issues, El Paso feels the sting, even while the rest of Texas is enjoying a price dip.
The City-by-City Breakdown
- Houston & San Antonio: These cities are usually the winners. You'll often find gas here for $2.25 to $2.35.
- Dallas-Fort Worth: A bit higher, usually averaging $2.49. It's the "metroplex tax"—higher demand and more traffic.
- Amarillo: Surprisingly competitive at $2.27, mostly due to regional supply chains in the Panhandle.
- The Border & West Texas: Areas like McAllen have recently seen prices as low as $2.16, while Midland-Odessa—the heart of the oil patch—sometimes has higher prices because of the sheer cost of living and local labor demand.
What Really Makes Up the Cost of a Gallon?
Most people think oil companies just pick a number out of a hat. It's actually a bit more mathematical than that. About 50-60% of what you pay is just the cost of crude oil. The rest is a mix of refining costs, marketing, and the profit margin for the station owner (which is usually only a few cents per gallon, believe it or not).
Then there are the taxes. Texas has a relatively low state gas tax of 20 cents per gallon. Add the federal tax of 18.4 cents, and you’re looking at about 38.4 cents in pure tax before you even start the car. Compare that to California, where taxes can exceed 60 cents, and you start to see why Texas feels like a bargain.
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New Rules for 2026
Something new happened this year. As of January 1, 2026, Texas implemented a "Highway Cost Index" adjustment for fuel taxes. Basically, the state can now adjust the fuel tax slightly based on the cost of road materials and labor. While the change wasn't massive this year, it’s a new variable that means the "fixed" 20-cent tax might not be so fixed in the future.
Does the Oil Industry Help or Hurt?
It's a double-edged sword. When oil prices are high, the Texas economy booms. Jobs are everywhere, and the state budget is flush. But you pay for it at the pump. When oil drops—like the current trend toward $50-$55 per barrel—your wallet feels better, but the "Help Wanted" signs in Midland might start to disappear.
How to Actually Save Money at the Pump
If you’re tired of playing the guessing game, there are a few real-world ways to beat the average.
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- Warehouse Clubs: Costco and Sam’s Club in places like Plano or Hudson Oaks have been spotted selling gas for under $2.00 recently. If you have a membership, use it.
- App Hunting: GasBuddy and AAA are fine, but look for station-specific apps like H-E-B or Kroger. They often give you an extra 3 to 10 cents off if you’re a "loyal" shopper.
- Day of the Week: Historically, Monday and Tuesday mornings are the cheapest times to buy. By Thursday, stations start hiking prices for the weekend travelers.
Texas is likely to keep seeing these lower-than-average prices through the rest of 2026. Most analysts expect the state average to stay well under the $3.00 mark, barring any major hurricanes or global "surprises."
To keep your fuel costs down this month, try to fill up in larger metro hubs rather than stopping at remote stations along the interstate. If you're heading out on a long road trip through West Texas, use a tracking tool to identify the cheapest stops in Abilene or San Angelo before you hit the more expensive stretches of I-10.