Statewide average updated daily • Source: AAA
Alabama gas prices typically rank among the cheapest in the Southeast and the country, usually running 15 to 30 cents below the national average. The state benefits from one of the lower gas tax rates in the nation, proximity to Gulf Coast refining and supply infrastructure, and low retail operating costs that allow stations to maintain competitive margins. Alabama’s position along major interstate corridors including I-65, I-20, and I-10 generates strong retail competition that benefits all drivers in the state.
Alabama’s state gas tax is 28 cents per gallon, below the national average. The state does not apply general sales tax to gasoline, keeping the effective total burden lower than states that do. Combined with the federal rate the total tax cost is moderate and well below the national average when all factors are considered.
Alabama is well-positioned in the Gulf Coast fuel supply network. The state sits between Louisiana and Georgia on the Colonial Pipeline route and has good access to both Gulf Coast refinery supply and pipeline distribution infrastructure. Birmingham and Mobile serve as the main distribution hubs with fuel terminal facilities that supply the state efficiently.
Low retail operating costs are a meaningful factor — Alabama has some of the least expensive commercial real estate in the Southeast, and the overall cost of running a retail business is favorable compared to Northern or coastal states. These savings are reflected in the fuel prices consumers pay.
Did you know? Alabama is home to the Port of Mobile, one of the most important deepwater ports on the Gulf Coast and a significant terminal for petroleum product imports that supplement pipeline supply for the region. Alabama has historically ranked among the states with the highest vehicle miles traveled per capita, driven by a predominantly rural population with limited public transit options. The stretch of I-65 through Alabama connecting Birmingham to Mobile is one of the most competitive highway fuel markets in the Southeast, with a dense concentration of travel centers that keep prices along the corridor among the lowest in the state.
Compare today’s average in Alabama with nearby states to understand regional price differences.
Learn more about what drives gas prices across the United States.
Crude oil prices are the biggest driver of what you pay at the pump. For U.S. and global crude oil production data updated from EIA figures, see Oil Production Live.