Least Expensive Gasoline By Far

Tucumcari

November 21, 2024

I complimented the cashier at love’s in Tucumcari for her upbeat personality at 8 AM.

Her response?

“You have to have one to live here.”

Why is gas so cheap in New Mexico?

Gas is generally considered cheap in New Mexico primarily because of its proximity to significant oil and natural gas reserves within the state, which means a readily available supply and lower transportation costs compared to other regions that need to import more fuel; this results in lower wholesale prices that translate to cheaper gas for consumers.

Key factors contributing to low gas prices in New Mexico:

Domestic oil production:

New Mexico has a substantial amount of oil production within its borders, allowing for easy access to crude oil which is then refined into gasoline.

Natural gas reserves:

The state also possesses large natural gas reserves, which can be used to generate electricity or blended with gasoline, further lowering costs.

Lower transportation costs:

Due to the close proximity of oil and gas production sites to refineries, the need for long-distance transportation is minimized, keeping costs down.

Less population density:

Compared to heavily populated areas, New Mexico's lower population means less demand for gasoline, which can also contribute to lower prices.

While it does t mention refining capacity, I suspect that’s a reason as well. There is at least one refinery in New Mexico.