During college, I usually drove home three to four times a year from Massachusetts to Cleveland, Ohio. Not only was it a long, ten hour drive but it also drained my Civic’s gas tank with ease.

So I would also be thankful to arrive in Cleveland and find gas prices that were often thirty to forty cents less than what I paid in Massachusetts. It never made much sense to me, but was always welcome - until I returned to Massachusetts and its higher gas prices.

Thankfully, an article in this morning’s Wall Street Journal helped to clear up some of the mystery of why gas prices vary by region.

• Gasoline taxes vary state to state, and are a constant factor. In other words, prices in certain states will often be higher than other states simply because of the tax on gasoline. For instance, New York has roughly two and a half times the tax on gas than Alaska.
• Transportation costs add to the price for regions further from refineries. The Midwest has to ship a large portion of the gas it consumes, which of course costs money.
• Local refinery issues have a large impact. For instance, Chicago currently has some of the highest gas prices in the nation due to the partial failure of a single oil refinery outside the city.
• Various other factors also contribute to the price. California has stringent specifications for the gas it uses, and also needs a separate supply as it isn’t connected to the majority of the nation’s gas supply. In the previous year this has actually lowered prices, as its own refineries have been producing a steady supply.

Two other interesting notes: First, if you want to find the absolute cheapest gas in your area, check out the site Gas Buddy. Second, do a google image search for “gas” and you’ll find some nostalgic images of gas priced at half of which we pay today - and yet still accompanied by stories about record high gas prices!