California Drivers Cross State Lines to Save Over $3 Per Gallon on Gas
The New Border Run
The ongoing conflict in Iran has had a massive toll on car owners, as gas prices have soared so high that more Americans have even started carpooling again. Another development is that drivers from California are crossing into Arizona to save on fuel, with a report by Inside Edition showing they save more than $3 per gallon on the detour.
In Needles, California, a Mobil gas station was selling gas for $7.49 as of the report's posting. That's a huge contrast compared to a station in Arizona's Mojave Valley, where gas was significantly cheaper at $4.19. The two stations are only about a mile and a half apart, which would take about two to three minutes at 35 mph. That sounds like an even more practical trade-off as modern cars become more fuel-efficient, with the average vehicle in the U.S. getting around 27 mpg and models like the Honda Civic exceeding 35 mpg.
Why the Gap Exists
The main culprit behind this juxtaposition is the gas tax, especially given California's favorable stance on electric-vehicle adoption. The report stated that California imposes the highest state gas tax in the U.S. at approximately 70 cents per gallon, compared to 18 cents in Arizona. In addition, California also requires a cleaner-burning fuel blend that adds costs, which may be good for the environment, but not necessarily for drivers' pockets.
The steep gas tax adds to the cost pressure behind California's EV push. There is also a broader policy that bans the sale of new gas-powered cars by 2035, though the current administration has since challenged the rule and even filed a lawsuit against the state.
Fuel Prices Changing the Market
With California continuing to push for EV adoption, situations like drivers crossing into another state just for a fill-up could become more common, potentially affecting businesses that rely on gas-powered cars in the long term. Ongoing tensions around the Strait of Hormuz could also keep pressure on fuel supplies and leave gas prices elevated.
Beyond the pump, inflated gas prices have helped boost the EV market, with Hyundai, which sells EVs like the Ioniq 5, reportedly recording 40% growth in U.S. EV sales between February and March 2026. In the used-car market, iSeeCars recently released a study suggesting that more buyers are choosing EVs and hybrids, with the Tesla Model X ranking as the fastest-selling used car, followed by the Lexus RX 350h and Honda Civic Hybrid.
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This story was originally published May 6, 2026 at 7:45 AM.