California Gas Prices Are Most Expensive, but You’ll Work Longer in These States To Afford It
It’s a well-known fact that California has the highest gas prices in the country, much higher than today’s national average price for regular grade gas. In some parts of the state, higher than the federal minimum hourly wage. However, for non-Californians thinking “it serves them right for living in the land of milk and honey,” California residents might not have it as bad at the pumps as you may think.
Consumer Price Index: How Much More Did Gas & Electric Cost You in May?
Live Updates: Inflation, Social Security and More Economic Updates
According to a CNN study, wages dictate gas prices to a very significant degree. For example, as incredible as California gas prices seem, its residents don’t bear as big of a brunt as workers in other states due to earning a higher average hourly wage. For its study, CNN used the national average gas price (on that day) and the May national wage estimate to find that, with the exception of Massachusetts workers who only have to work 1 hour and 55 minutes to afford 15 gallons of regular gas, workers earning the state average wage need to work between 2 hours and 4 minutes (Colorado) and 2 hours and 57 minutes (Nevada) to buy 15 gallons of gas.
Taking a cue from the CNN study, GOBankingRates figured how long workers making minimum wage — far less than the state average hourly wage — would need to spend on the job to buy 10 gallons of regular gas in their state. As of June 10, AAA calculated national average cost for regular unleaded gasoline at $4.986, and $5.753 for diesel. Once again, both are the highest recorded average prices. The federal minimum hourly wage of $7.25 per hour has been unchanged since 2009, when it was raised from $6.55 per hour.
The following list ranks each state according to how many hours you need to work to buy 10 gallons of gas in your state:
50. Massachusetts
- Regular gas: $5.03
- Minimum wage: $14.25
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 25 minutes
49. New York
- Regular gas: $5.02
- Minimum wage: $13.20
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 48 minutes
48. Washington
- Regular gas: $5.53
- Minimum wage: $14.49
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 49 minutes
47. Connecticut
- Regular gas: $4.97
- Minimum wage: $13.00
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 49 minutes
46. Colorado
- Regular gas: $4.83
- Minimum wage: $12.56
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 51 minutes
45. New Jersey
- Regular gas: $5.04
- Minimum wage: $13.00
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 53 minutes
44. Maine
- Regular gas: $5.05
- Minimum wage: $12.75
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 58 minutes
43. Maryland
- Regular gas: $4.99
- Minimum wage: $12.50
- Work hours needed to buy 10 gallons of regular gas: 3 hours and 59 minutes
42. Vermont
- Regular gas: $5.03
- Minimum wage: $12.55
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 1 minute
41. Rhode Island
- Regular gas: $5.01
- Minimum wage: $12.25
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 5 minutes
40. Arkansas
- Regular gas: $4.51
- Minimum wage: $11.00
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 6 minutes
39. Missouri
- Regular gas: $4.58
- Minimum wage: $11.15
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 7 minutes
38. Arizona
- Regular gas: $5.30
- Minimum wage: $12.80
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 8 minutes
37. New Mexico
- Regular gas: $4.82
- Minimum wage: $11.50
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 11 minutes
36. Oregon
- Regular gas: $5.52
- Minimum wage: $12.75
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 20 minutes
35. Virginia
- Regular gas: $4.81
- Minimum wage: $11.00
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 22 minutes
34. California
- Regular gas: $6.42
- Minimum wage: $14.00
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 35 minutes
33. Minnesota
- Regular gas: $4.74
- Minimum wage: $10.33
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 35 minutes
32. Illinois
- Regular gas: $5.56
- Minimum wage: $12.00
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 38 minutes
31. South Dakota
- Regular gas: $4.70
- Minimum wage: $9.95
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 43 minutes
30. Delaware
- Regular gas: $4.98
- Minimum wage: $10.50
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 44 minutes
29. Florida
- Regular gas: $4.83
- Minimum wage: $10.00
- Work hours needed to buy 10 gallons of regular gas: 4 hours and 50 minutes
28. Nebraska
- Regular gas: $4.68
- Minimum wage: $9.00
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 12 minutes
27. Montana
- Regular gas: $4.84
- Minimum wage: $9.20
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 16 minutes
26. Michigan
- Regular gas: $5.22
- Minimum wage: $9.87
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 17 minutes
25. Alaska
- Regular gas: $5.55
- Minimum wage: $10.34
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 21 minutes
24. Ohio
- Regular gas: $5.06
- Minimum wage: $9.30
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 26 minutes
23. Hawaii
- Regular gas: $5.52
- Minimum wage: $10.10
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 28 minutes
22. West Virginia
- Regular gas: $4.89
- Minimum wage: $8.75
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 35 minutes
21. Nevada
- Regular gas: $5.62
- Minimum wage: $9.75
- Work hours needed to buy 10 gallons of regular gas: 5 hours and 46 minutes
20. Georgia
- Regular gas: $4.43
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 7 minutes
19. Mississippi
- Regular gas: $4.51
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 13 minutes
18. Louisiana
- Regular gas: $4.52
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 14 minutes
17. Oklahoma
- Regular gas: $4.60
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 20 minutes
16. South Carolina
- Regular gas: $4.60
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 20 minutes
15. Kansas
- Regular gas: $4.61
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 22 minutes
14. Alabama
- Regular gas: $4.62
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 22 minutes
13. Tennessee
- Regular gas: $4.64
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 24 minutes
12. Texas
- Regular gas: $4.65
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 25 minutes
11. North Carolina
- Regular gas: $4.66
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 26 minutes
10. North Dakota
- Regular gas: $4.70
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 29 minutes
9. Wyoming
- Regular gas: $4.72
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 31 minutes
8. Iowa
- Regular gas: $4.73
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 31 minutes
7. Kentucky
- Regular gas: $4.80
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 37 minutes
6. Wisconsin
- Regular gas: $4.92
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 47 minutes
5. New Hampshire
- Regular gas: $4.98
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 52 minutes
4. Utah
- Regular gas: $5.01
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 55 minutes
3. Pennsylvania
- Regular gas: $5.06
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 6 hours and 59 minutes
2. Idaho
- Regular gas: $5.08
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 7 hours and 1 minute
1. Indiana
- Regular gas: $5.23
- Minimum wage: $7.25
- Work hours needed to buy 10 gallons of regular gas: 7 hours and 13 minutes
Obviously, working in states that have a lower minimum wage means you have to work more to afford gas. When we look at the Dakotas, for example, we can see how impactful minimum wage is to buying power. Gas costs the same in both, yet because South Dakota’s minimum wage is more than $2.00 higher than North’s bottom level minimum wage of $7.25, Southerners work less time to buy more.
Employers in states that do not have a minimum wage (Alabama, Louisiana, Mississippi, South Carolina and Tennessee) or that have a minimum wage below the federal minimum wage (Georgia and Wyoming) are subject to the Fair Labor Standards Act and required to pay their employees at least the current federal minimum wage of $7.25 per hour, per the Department of Labor.
It’s evident from the data that the federal minimum wage is vitally important to the personal finances of millions of workers despite state gas prices. Wages are most important to those living in one of the 20 states where minimum wage is $7.25 \per hour. When gas prices and inflation are at their current staggering highs, minimum wage earners get hit the hardest.
More From GOBankingRates
- 6 Ways To Tell If You're Middle Class or Upper Middle Class
- If You Find a Rare 'Doubled Die' Penny, It Could Be Worth $1.14 Million
- 3 Ways to Recession Proof Your Retirement
- Here's How To Build a 6-Month Emergency Fund
