Discover the 6 Towns With the Cheapest Gas in Alabama

Written by Shreya Agrawal
Updated: November 6, 2023
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Gasoline prices make a significant impact on our daily budgets, influencing our commuting decisions and travel plans. In Alabama, like in many other states, gas prices can vary greatly from one town to another. For those seeking affordable fuel options, knowing where to find the cheapest gas can lead to substantial savings. In this article, we’ll explore the top six towns in Alabama with the most budget-friendly gas prices.

Take a look at 6 of the towns with the cheapest gas in Alabama.

1. Ensley – $2.89 at Wahavo

Birmingham - Alabama. Road or Town Sign

Birmingham – Alabama. Road or Town Sign. Flag of the united states. Blue Sky. Red arrow shows the direction in the city

©4-Your-Eyes-Only/iStock via Getty Images

Ensley is a neighborhood in Birmingham, Alabama. It stands out among other towns for its exceptionally low gas prices, with regular gas priced at $2.89 per gallon at the Wahavo station. There are several factors contributing to these affordable gas prices in Ensley such as high competition, great location and low local taxes.

Ensley benefits from a competitive gas market, with multiple gas stations vying for customers. This competition often leads to lower prices as stations strive to attract motorists.

Being part of the Birmingham metropolitan area, Ensley enjoys proximity to major transportation routes, reducing distribution costs and helping to keep prices down. Ensley’s gas prices can change based on local taxes and regulations, which can vary from one municipality to another.

2. Decatur – $2.99 at Circle K

Beautiful shot of a Steamboat Bill Bridge across the Tennessee River in Decatur, Alabama

A beautiful shot of a Steamboat Bill Bridge across the Tennessee River in Decatur, Alabama

©Wirestock/iStock via Getty Images

Decatur lies in northern Alabama along the Tennessee River. It also offers budget-friendly options for gasoline. Regular gas costs $2.99 per gallon at Circle K, the lowest in the town. The town’s affordability is attributable to factors like access to refineries, a competitive market as well as local economic factors.

Decatur’s proximity to refineries and distribution centers allows for more efficient transportation of fuel, reducing costs. As a city with a thriving economy and growing population, Decatur has a competitive gas market that often translates into lower prices for consumers. Finally, the local economy and cost of living can impact gas prices in Decatur. A lower cost of living can often lead to more affordable fuel options.

Montgomery – $3.04 at Alabama National Guard

Montgomery, AL's Riverfront and Alabama River

A view overlooking the Alabama River and Montgomery Riverwalk complete with riverboat and amphitheater.

©Sutherland_Boswell/iStock via Getty Images

Montgomery, Alabama’s capital, has regular gas prices as low as $3.04 per gallon at the Alabama National Guard. Several factors contribute to Montgomery’s relatively affordable gas prices such as having several government facilities, being a major transportation hub, as well as having a good tax structure.

Montgomery houses government facilities, including military installations like the Alabama National Guard. These institutions may have gas stations with competitive prices for their personnel and the public.

As a major transportation hub, Montgomery enjoys efficient distribution networks that help keep fuel prices in check. Finally, the city’s tax structure and economic policies can influence gas prices, making them more appealing to residents and visitors.

Birmingham – $3.05 at Circle K

Pink Muhly Grass Path

Path through Pink Muhly Grass, Railroad Park, with Regions field in the background, Birmingham, Alabama

©Leigh Ann Speake/iStock via Getty Images

Birmingham is Alabama’s largest city and one of the best known places in the state. It also has some of the cheapest gas in the state, with regular gas priced at $3.05 per gallon at Circle K. Several factors contribute to Birmingham’s affordability, including having strong competition across different gas stations, being the center of the major transportation networks as well as lots of economic activity.

Birmingham, as a major urban center, has a highly competitive gas market, leading to competitive pricing among gas stations. The city’s well-developed transportation networks reduce distribution costs, allowing gas stations to offer lower prices. Birmingham’s robust economy and large population provide the volume of customers necessary to sustain competitive gas prices.

Phenix City – $3.06 at Walmart

Chattahoochee River Separating the States of Alabama and Georgia

The Chattahoochee River runs between the states of Alabama and Georgia. This image was taken on the Columbus Georgia side looking at a Phenix City Alabama cityscape.

©LCBallard/iStock via Getty Images

Phenix City, located on the border with Georgia and adjacent to Columbus, offers regular gas priced at $3.06 per gallon at Walmart. It is therefore famous for being a provider of cheap gas in the state. Several factors contribute to Phenix City’s affordable gas prices such as having retail giants like Walmart, being on the border and having cross border competition, as well as other local economic factors.

The presence of major retail chains like Walmart can lead to competitive pricing, as these retailers often aim to attract customers with lower gas prices. Proximity to Georgia and the competition with gas prices in neighboring cities can also motivate Phenix City gas stations to offer competitive rates. Finally, the local economy and cost of living can also play a role in gas pricing, making Phenix City an attractive option for budget-conscious motorists.

Auburn – $3.07 at Shell

Auburn University Campus in Auburn, Alabama

Auburn University Campus in Auburn, Alabama

©Ray Tan/iStock via Getty Images

The town of Auburn is home to Auburn University but is also home to several cheap places to fuel your car. The town offers regular gas priced at $3.07 per gallon at the local Shell station. Factors like being a university town, having competition from other gas stations and being in the center of a major transportation network contribute to Auburn’s relatively affordable gas prices.

Auburn’s status as a college town can lead to competitive gas pricing. This is because businesses aim to cater to the needs of students and residents, who want cheap gas. The presence of multiple gas stations in the area also fosters competition, often resulting in lower prices. Efficient transportation networks, including highways and distribution channels, also help Auburn maintain cost-effective fuel options.

What Affects Gas Prices in Alabama?

Gas fuel station with clouds and blue sky

There are several factors that affect gas prices in Alabama.

©Kwangmoozaa/Shutterstock.com

Gasoline prices in Alabama, like in most parts of the United States, are influenced by a combination of global, national, regional, and local factors. Understanding these factors can provide insight into why gas prices fluctuate and why they may vary from one town or city to another within the state.

Crude Oil Prices

The most significant factor influencing gas prices is the cost of crude oil. Crude oil is the primary raw material used to produce gasoline. As global crude oil prices rise or fall due to geopolitical events, production levels, and supply and demand dynamics, gas prices in Alabama and the rest of the U.S. are directly affected. Alabama doesn’t produce crude oil but is part of the broader U.S. market, so it is impacted by global price changes.

Refining Costs and Capacity

Once crude oil is extracted, it must be refined into gasoline and other products. Refineries incur costs related to refining and distribution, and any changes in these costs can influence gas prices. Additionally, if refineries experience disruptions due to maintenance, natural disasters, or accidents, it can affect the supply of gasoline and result in price spikes.

Oil refinery plant from industry zone, Aerial view oil and gas petrochemical industrial, Refinery factory oil storage tank and pipeline steel at night, Ecosystem and healthy environment concepts.

Oil refinery plant from industry zone, Aerial view oil and gas petrochemical industrial, Refinery factory oil storage tank and pipeline steel at night. Refineries play a major role in determining the cost of oil.

©Avigator Fortuner/Shutterstock.com

Distribution and Transportation

Gasoline must be transported from refineries to distribution points and then to individual gas stations. The cost of transportation, including shipping, trucking, and pipeline fees, can impact gas prices. In Alabama, proximity to major transportation routes, such as highways and pipelines, can influence pricing in various regions.

Taxes

Federal, state, and local taxes make up a significant portion of the price of gasoline. Each state has its own tax rates, and Alabama’s gas tax rates are relatively low compared to some other states. Understanding the tax structure in your area can provide insights into why gas prices may differ across towns within Alabama.

Competition among Gas Stations

Competition among gas stations within a given area can also influence prices. In towns or cities with numerous gas stations in close proximity, prices may be lower due to the competitive market. Conversely, in more remote areas with limited options, prices may be higher.

Refuel cars at the fuel pump. The driver hands, refuel and pump the car's gasoline with fuel at the petrol station. Car refueling at a gas station Gas station

Refuel cars at the fuel pump. The driver hands, refuel and pump the car’s gasoline with fuel at the petrol station. Customers are always trying to find the gas stations with the lowest taxes and gas prices.

©jittawit21/Shutterstock.com

Seasonal Factors

Gasoline prices can fluctuate seasonally. Demand typically increases during the summer months when more people travel for vacations and holidays. This increased demand can lead to higher prices. Conversely, during the winter, when demand is lower, prices may drop.

Exchange Rates

Oil is traded globally in U.S. dollars. Changes in exchange rates between the U.S. dollar and other currencies can impact crude oil prices. This, in turn, affect gasoline prices in Alabama.

Environmental Regulations

Environmental regulations and standards can influence the cost of refining and distributing gasoline. Different formulations of gasoline may be required in different regions to meet environmental standards. This in turn can affect production costs and supply.

Local Economic Conditions

The overall economic health of a town or region can also affect gas prices. In areas with a higher cost of living or stronger economies, gas prices may be somewhat higher due to increased demand. Conversely, in areas with a lower cost of living, prices may be more competitive.

Consumer Behavior

Finally, consumer behavior can also play a role in gas prices. When consumers are willing to pay higher prices without reducing their consumption significantly, gas stations may raise prices.

It is essential to note that while these factors can help explain fluctuations in gas prices, they are interconnected and can vary in their impact from one region to another within Alabama. Regularly monitoring gas prices, understanding local factors, and adopting fuel-efficient driving habits can help consumers make informed choices about when and where to fill up their tanks to maximize savings.

Final Thoughts

For residents and travelers in Alabama, knowing where to find the cheapest gas can lead to significant savings over time. The top six towns in Alabama to find cheapest gas are Ensley, Decatur, Montgomery, Birmingham, Phenix City, and Auburn. They offer budget-friendly options for refueling your vehicle while you are in the state.

Several factors such as competition, location, proximity to refineries and local economic conditions contribute to change in gas prices and affordability in these towns. Whether you are a local looking to cut down on commuting costs or a traveler passing through Alabama, consider these towns as your go-to destinations for wallet-friendly fueling.

Keep in mind that gas prices can change frequently due to various external factors. Therefore, it is advisable to check for the latest prices at your chosen gas station before you drive there to fill up your tank. By staying informed and making savvy choices, you can make your fuel expenses more manageable and enjoy the open road with confidence.

Summary of the 6 Towns With the Cheapest Gas in Alabama

RankTownGas Price
1Ensley$3.04 at the Alabama National Guard
2Decatur$2.99 at Circle K
3Montgomery$3.04 at Alabama National Guard
4Birmingham$3.05 at Circle K
5Phenix City$3.06 at Walmart
6Auburn$3.07 at Shell

The photo featured at the top of this post is © Joseph Sohm/Shutterstock.com


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About the Author

Shreya is a climate scientist. She also studies paleontology and evolutionary biology. She enjoys reading all kinds of literature and listening to rock music in her free time.

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