Statewide average updated daily • Source: AAA
Kentucky gas prices typically run near or slightly below the national average, making it one of the more affordable fuel markets in the upper South. The state has a moderate tax rate, good pipeline access from Gulf Coast supply, and competitive retail markets along its major interstate corridors including I-75, I-64, and I-65. Kentucky’s position as a crossroads between the Midwest and the Southeast gives it access to fuel supply from multiple directions, providing supply reliability and competitive wholesale pricing.
Kentucky’s state gas tax is approximately 26 cents per gallon with a variable component tied to the average wholesale price of fuel. When wholesale prices rise the effective Kentucky rate increases modestly, and when they fall it decreases slightly. The overall burden is near the national median.
Kentucky is well-served by pipeline infrastructure connecting it to both Gulf Coast supply via the Colonial Pipeline system and Midwest supply via connections through Ohio and Indiana. Louisville and Lexington serve as the primary distribution hubs with fuel terminal facilities that supply the state.
The interstate corridors through Kentucky are heavily traveled — I-75 is one of the primary north-south routes connecting the Midwest to Florida, and the truck stop and travel center competition along this corridor helps keep fuel prices competitive throughout the state. Rural Kentucky, particularly in the eastern Appalachian coalfields region, tends to run slightly higher due to longer delivery distances and limited competition.
Did you know? Kentucky is one of the top coal producing states in the country, and the coal industry’s heavy use of diesel fuel for mining equipment makes Kentucky one of the larger per-capita diesel consumers in the nation. The Louisville area sits at the intersection of I-64, I-65, and I-71 — three major interstates — making it one of the most strategically located fuel distribution points in the Upper South. Kentucky is home to the world’s largest bourbon whiskey industry, and the distilleries concentrated in the Bluegrass region are significant commercial fuel consumers for climate control, grain transport, and distribution fleets.
Compare today’s average in Kentucky 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.