Lowest average prices for a gallon of diesel fuel or regular unleaded gasoline are each 16 cents better in North Carolina than any other state in the nation, according to an update Monday from AAA.
Along with Ohio and Georgia, suspensions of fuel taxes on each are in place in North Carolina helping achieve norms of $5.53 a gallon for diesel and $3.48 a gallon for unleaded regular gasoline. National averages are $6.34 for diesel and $4.28 for gas.
Among other states, Indiana has suspended its gas tax. Utah has a 15% reduction on the motor fuel tax; Illinois froze a 1.3 cent rate increase; and Kentucky froze a rate increase and enacted a 10 cents per gallon reduction on diesel and gasoline.
Diesel set a North Carolina record of $6.24 on Sept. 19, and unleaded gasoline clipped $4.16 on Sept. 17.
Lawmakers overwhelmingly approved Relief at the Pump, the suspension through Thanksgiving of 41 cents per gallon on gasoline and diesel fuel, on Oct. 7. Gov. Josh Stein signed it into law Oct. 9, and prices began to fall the next day.
The corresponding consequence of dropping the state’s fuel taxes seven weeks is a loss of revenue for money used to help maintain highways through the state Department of Transportation, and lawmakers addressed that in the bill language. The state’s Stabilization and Inflation Reserve account will replace the fuel tax revenue that the state Department of Transportation’s Highway and Highway Fund would otherwise receive during the suspension period.
An estimated $362.3 million is in play, according to Rockingham County 13th term Sen. Phil Berger Jr. He also said the account to draw from has a balance of about $518 million available. First-term Republican state Treasurer Brad Briner, in published reports, said $11 billion in reserves means the amount would not negatively impact the state’s top-level credit rating.
If not extended, the fuel taxes return Dec. 1.
The Center Square analyzes this market monthly, at a minimum, as part of its mission for reporting of government accountability, what taxpayers are spending and where, and how it translates for the businesses and communities throughout the state.
Diesel prices are crucial to the trucking industry of America, and hence, many consumer staples. Fuel prices have been a concern ahead of the 2026 midterm elections ever since Israel and America launched missile strikes into Iran on Feb. 28.
Declarations of victory, military action being complete, of ceasefire, and of the ceasefire ending have preceded multiple ups and downs in industry price trends. Before the conflict, the Strait of Hormuz – Iran is on its northern coast – had about 20% of the world’s oil passing through daily.
For North Carolina, the average on Jan. 5 was a calendar year low of $2.61 a gallon for unleaded. The price was $2.75 the day before Operation Epic Fury began; was $4.21 on May 6; and $3.48 on July 8.
Diesel was $3.39 a gallon at the beginning of the year; $5.81 on April 7; $5.50 on May 6; and $4.56 on July 8.
Events coinciding with dates are second-term Republican President Donald Trump declaring a double-sided ceasefire April 7; North Carolina having a 9-cent overnight rise in gas prices on May 6; and Trump declaring the ceasefire over and strikes resuming on July 8.
North Carolina’s electric vehicle charging rate average, according to AAA, is 41.7 cents per kilowatt-hour. The national average is 41.9 cents per kWh. More than 100,000 zero-emission vehicles are registered in the state. At the start of 2025, the state norm was 33.5 cents per kWh and the national was 34.7 cents per kWh.
Next lowest on diesel is Georgia ($5.69), Texas ($5.73), Louisiana ($5.76) and South Carolina ($5.79). Next lowest on unleaded gas is Georgia ($3.69), Texas ($3.71), South Carolina ($3.76) and Louisiana ($3.77).
California ($8.44), Washington ($7.26) and Hawaii ($7.24) remain highest on average for diesel, and California ($6.01), Hawaii ($5.65) and Washington ($5.30) are highest on average for unleaded gasoline.
Among the 14 major metro areas in North Carolina, the least expensive average ($3.25) for unleaded gas in the Goldsboro market. The most expensive is the Durham-Chapel Hill area at $3.61.
Diesel is the most consumer-friendly ($5.41) in the Goldsboro markets.
