Statewide average updated daily • Source: AAA
North Dakota gas prices typically run slightly above the national average, influenced by the state’s remote location far from major refining centers, a moderate tax rate, and the unique dynamics of an oil-producing state that nonetheless pays above-average prices for refined fuel. North Dakota is one of the top oil producing states in the country — the Bakken formation in the western part of the state is one of the most productive oil fields in North America — yet crude oil production does not automatically translate to cheap retail gasoline when local refining capacity is limited.
North Dakota’s state gas tax is approximately 23 cents per gallon, below the national average. Despite the low tax rate, total fuel costs run above average due to the state’s distance from major refining centers.
North Dakota has very limited local refining capacity despite its enormous crude oil production. The crude oil extracted from the Bakken formation is largely shipped by pipeline and rail to refineries in other states and other countries — it does not automatically get refined locally into gasoline that North Dakota drivers can buy cheaply. The state receives its refined fuel supply primarily from pipeline connections to Midwest refineries and from Billings, Montana area refinery supply — all of which involves longer supply chains than Gulf Coast states enjoy.
The western Bakken oil patch region around Williston has its own unique fuel market dynamics driven by heavy commercial and industrial demand from the oil industry itself — drilling rigs, trucks, and heavy equipment consume enormous diesel volumes that keep local fuel demand elevated.
Did you know? North Dakota is one of the top three oil producing states in the country — the Bakken Shale produces over a million barrels of crude per day — yet North Dakota drivers do not enjoy cheap gas because the crude is exported for refining elsewhere rather than processed locally. During the Bakken oil boom the population of Williston more than doubled as oil workers flooded in from across the country. North Dakota has the lowest population density of any state in the contiguous United States — fewer than 12 people per square mile — making fuel costs a larger share of household budgets than in more densely populated states.
Compare today’s average in North Dakota 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.