This Is How Gas Prices Are Determined In Every State

This Is How Gas Prices Are Determined In Every State

Wondering why your tank of gas costs what it does? We can help.

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With gas prices skyrocketing around the world and hitting record-breaking highs in the United States, you wouldn’t be alone if you were wondering how, exactly, prices are set where you live. Especially if you’re filling up your tank with $7 per gallon gasoline, wondering why people out in Texas are complaining about their $4.50 per gallon prices.

While there are a quite a few people in this country that firmly believe prices are raised or lowered based on the President’s daily whims, it’s more complicated than that. The overall price is generally dictated by the economic laws of supply and demand, which puts a price point on a barrel of crude oil. In today’s world, where our oil supply has been disturbed by ongoing conflicts, demand for oil is outweighing supply, which makes each gallon of gasoline you purchase more expensive.

But the economics of state-by-state changes can be a little more obscure if you aren’t familiar with all the politics that go into determining the price of gasoline. We’re talking taxes, refining costs, regional concerns, distribution, and marketing — all of which vary on a state-by-state level.

According to the U.S. Energy Information Administration, roughly 43 percent of the cost of a gallon of gas is the crude oil itself. Another 22 percent comes from federal and state tax, 25 percent goes to refining costs, and 10 percent to distribution and marketing. Those numbers vary state by state as well.

Today, we’re going to walk you through all those external factors that add up at the pump in your state.

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Alabama

Alabama

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.28 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.29 per gallon
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Alaska

Alaska

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.0895 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.0895 per gallon
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Arizona

Arizona

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.19 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.27 per gallon
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Arkansas

Arkansas

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.248 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.288 per gallon
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California

California

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.533 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.68 per gallon

One study showed that Californians were also paying the following fees when filling up the tank:

  • Sales Tax: $0.10 per gallon
  • Low Carbon Gas Program Fee: $0.22 per gallon
  • Greenhouse Gas Program Fee: $0.15 per gallon
  • Underground Tank Storage Fee: $0.02 per gallon
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Colorado

Colorado

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes:$0.2325 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.20625 per gallon

Extra sales tax is applied in the city of Colorado Springs.

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Connecticut

Connecticut

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.25 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.465 per gallon

Additional fees:

  • Prices subject to 8.1 state sales tax
  • Petroleum Gross Receipts Earning Tax: $0.27
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Delaware

Delaware

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.23 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.22 per gallon
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District of Columbia

District of Columbia

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 Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.235 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.235 per gallon
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Florida

Florida

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.34396 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.35271 per gallon

Additional taxes and fees:

  • Subject to local tax up to 12 cents
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Georgia

Georgia

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.279 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.313 per gallon

Additional taxes and fees:

  • Subject to local sales tax
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Hawaii

Hawaii

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.16 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.16 per gallon

Additional taxes and fees:

  • Subject to county tax of 8.8 to 18 cents
  • Subject to sales tax
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Idaho

Idaho

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.33 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.33 per gallon
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Illinois

Illinois

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.391 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.466 per gallon
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Indiana

Indiana

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.30 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.49 per gallon

Additional taxes and fees:

  • Subject to seven percent sales tax
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Iowa

Iowa

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.305 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.325 per gallon
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Kansas

Kansas

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.2403 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.2604 per gallon
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Kentucky

Kentucky

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.26 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.23 per gallon
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Louisiana

Louisiana

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.20125 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.20125 per gallon
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Maine

Maine

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.31404 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.31404 per gallon
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Maryland

Maryland

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.368905 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.375405 per gallon
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Massachusetts

Massachusetts

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.24 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.24 per gallon
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Michigan

Michigan

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.263 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.263 per gallon

Additional taxes and fees:

  • Subject to six percent sales tax
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Minnesota

Minnesota

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.286 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.286 per gallon
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Mississippi

Mississippi

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.184 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.184 per gallon
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Missouri

Missouri

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.1742 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.1742 per gallon
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Montana

Montana

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.3275 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.302 per gallon
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Nebraska

Nebraska

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.306 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.296 per gallon
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Nevada

Nevada

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.23805 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.2775 per gallon

Additional taxes and fees:

  • Subject to additional local taxes
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New Hampshire

New Hampshire

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.23835 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.23825 per gallon
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New Jersey

New Jersey

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.414 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.485 per gallon
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33 / 53

New Mexico

New Mexico

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.18875 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.22875 per gallon
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34 / 53

New York

New York

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.4045 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.3865 per gallon

Additional taxes and fees:

  • Subject to sales tax to a cap of $2.00 per gallon
  • Subject to local sales tax
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North Carolina

North Carolina

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.3635 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.3635 per gallon
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36 / 53

North Dakota

North Dakota

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.23025 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.23025 per gallon
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37 / 53

Ohio

Ohio

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.385 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.47 per gallon
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38 / 53

Oklahoma

Oklahoma

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.20 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.20 per gallon
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39 / 53

Oregon

Oregon

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.36 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.36 per gallon

Additional taxes and fees:

  • Subject to additional fees of one to five cents
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40 / 53

Pennsylvania

Pennsylvania

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.586 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.741 per gallon
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41 / 53

Rhode Island

Rhode Island

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.35119 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.35119 per gallon
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42 / 53

South Carolina

South Carolina

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.2275 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.2275 per gallon
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43 / 53

South Dakota

South Dakota

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.30 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.30 per gallon
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44 / 53

Tennessee

Tennessee

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.274 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.284 per gallon
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45 / 53

Texas

Texas

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.20 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.20 per gallon
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46 / 53

Utah

Utah

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.3175 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.3175 per gallon
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47 / 53

Vermont

Vermont

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.3073 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.32 per gallon
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Virginia

Virginia

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.162 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.202 per gallon
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49 / 53

Washington

Washington

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.519952 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.519952 per gallon
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50 / 53

West Virginia

West Virginia

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.357 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.357 per gallon
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Wisconsin

Wisconsin

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.329 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.329 per gallon
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52 / 53

Wyoming

Wyoming

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Gasoline

  • Federal Taxes: $0.184 per gallon
  • State Taxes: $0.24 per gallon

Diesel

  • Federal Taxes: $0.244 per gallon
  • State Taxes: $0.24 per gallon
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