Discover the 4 Towns With the Cheapest Gas in Alaska

Written by Shreya Agrawal
Updated: November 14, 2023
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Alaska is often referred to as “The Last Frontier” due to its far-off location. But it is a land of breathtaking landscapes, abundant wildlife, and unique communities. For residents and travelers, one of the critical considerations when it comes to deciding whether to explore this vast state is the cost of gasoline. Due to its remote location and unique logistical challenges, gasoline prices in Alaska can be significantly higher than in the rest of the United States. But in this article, we’ll explore the top four towns in Alaska where you can find the cheapest gasoline, so you can plan your trips accordingly. We’ll also uncover the factors that contribute to these favorable prices, so you can make the most of your journey in this rugged and beautiful state.

Due to its remote location and unique logistical challenges, gasoline prices in Alaska can be significantly higher than in the rest of the United States.

1. Fairbanks – Airport Gas and Oil

Aerial View of Downtown Fairbanks, Alaska during a stormy Summer Sunset

Fairbanks, Alaska, has some of the cheapest gasoline options available in the state.

©Jacob Boomsma/Shutterstock.com

The city of Fairbanks lies in Alaska’s interior. It is the state’s second-largest city. Luckily, Airport Gas and Oil, a local fuel station, offers some of the lowest gasoline prices in Fairbanks.

Regular Gas Price: $3.68 per gallon at Airport Gas and Oil.

Why Choose Fairbanks?

Fairbanks is a favorable choice for refueling due to its affordability. Airport Gas and Oil’s pricing strategy caters to local residents, offering budget-friendly options. Located near Fairbanks International Airport, this fuel station is accessible to travelers arriving in the city as well as to the rest of the residents.

Community Impact: Affordable gasoline prices at Airport Gas and Oil translate to savings for residents. They help Fairbanks’ residents manage their transportation costs, including daily commutes and winter heating.

2. Palmer – Turner’s Corner

Aerial View of Downtown Palmer, Alaska during Summer

Palmer, Alaska is a great town to refuel one’s engine.

©Jacob Boomsma/Shutterstock.com

The town of Palmer, located in the picturesque Matanuska-Susitna Valley, is known for its agricultural heritage and stunning views. Turner’s Corner, a local fuel station, provides competitive gasoline prices in Palmer.

Regular Gas Price: $4.34 per gallon at Turner’s Corner.

Why Choose Palmer?

Palmer is a great choice for refueling due to its competitive prices. These help some of its gas stations stay affordable. Since Turner’s Corner competes with other nearby fuel stations, contributing to competitive pricing, it is able to remain affordable. As a locally-owned business, Turner’s Corner also focuses on serving Palmer’s residents and providing budget-friendly options.

Community Impact: Affordable gasoline prices at Turner’s Corner support Palmer’s residents and local businesses, allowing for more cost-effective commuting and exploration.

3. Juneau – Gas ‘n Go Fleet

Juneau

The state capital, Juneau, is a great place to fuel your car or other vehicle.

©iStock.com/chaolik

Juneau, the state capital, is situated in the southeastern part of Alaska and is known for its natural beauty and outdoor activities. Gas ‘n Go Fleet, a local fuel station, offers competitive gasoline prices in Juneau.

Regular Gas Price: $4.35 per gallon at Gas ‘n Go Fleet.

Why Choose Juneau?

Gas ‘n Go Fleet is committed to serving Juneau’s residents, providing them with budget-friendly fuel options. This local focus helps residents maintain their expenses. Located within the city, this fuel station is accessible to both residents and visitors.

Community Impact: Affordable gasoline prices at the Gas ‘n Go Fleet contribute to cost savings for Juneau’s residents, making daily commutes and outdoor adventures more affordable.

4. Anchorage – Costco

Aerial View of the Main Campus of the State University in Anchorage, Alaska

One of the largest cities in Alaska, Anchorage is a great place to live and also has budget-friendly fuel.

©Jacob Boomsma/iStock via Getty Images

Anchorage, Alaska’s largest city, is a hub for culture, commerce, and outdoor activities. Costco, the popular membership-based retail store chain, has some of the lowest gasoline prices in Anchorage.

Regular Gas Price: $4.39 per gallon at Costco.

Why Choose Anchorage?

The membership benefits Costco provides to members means they can access bulk buying power, translating to lower gasoline prices. Costco is known for its high-quality fuels, providing peace of mind to consumers.

Community Impact: Affordable gasoline prices at Costco benefit Anchorage’s residents and support the local economy by making travel and daily life more cost-effective.

What Affects Gas Prices in Alaska?

Gasoline prices in Alaska are influenced by a unique combination of factors. Many of these stem from the state’s remote location, its vast and challenging terrain, and its dependence on oil production. Understanding these factors can help residents and visitors understand why fuel prices in Alaska can be substantially higher compared to the contiguous United States. Here are the key reasons behind gas prices in Alaska:

Distance from Refineries

Alaska’s remote location means that most of its gasoline is produced outside the state and transported significant distances by sea or pipeline. This long transportation journey incurs costs in terms of logistics, infrastructure maintenance, as well as fueling the vessels. Thus, all of these factors contribute to higher prices at the pump.

Limited Refining Capacity

Alaska has a relatively small number of oil refineries compared to its size and population. This is because of its remote location and challenging weather and terrain. The limited refining capacity requires importing a significant portion of gasoline, which can drive up costs.

Crude Oil Prices

Alaska’s economy is surprisingly closely tied to the oil industry. Fluctuations in global crude oil prices have a direct impact on the cost of gasoline in the state. When crude oil prices rise, gasoline prices in Alaska tend to follow suit.

Seasonal Variations

As we know, Alaska experiences extreme weather conditions, including very cold winters. This makes it important to use special winter-blend gasoline, which can be more expensive to produce. Additionally, road conditions during the winter may impact the transportation of gasoline, affecting supply and prices.

Supply Challenges

Due to Alaska’s vast size and challenging terrain, the distribution of gas to remote and rural communities can also be challenging and costly. These challenges may result in higher gasoline prices in areas with limited access.

Economic Dependency

Alaska relies heavily on revenue from oil production, and taxation of the oil industry plays a significant role in funding state government operations. Even though it produces a lot of oil, the citizens still depend on imports. Changes in oil prices and production levels can impact the state’s budget, which in turn may affect taxes and fees on gas.

Local Taxes

The cost of gasoline in Alaska can also vary by municipality due to local taxes. Some areas may have higher taxes on fuel, which can lead to higher prices at local gas stations.

Lack of Competition

In some remote parts of Alaska, there may be limited competition among gas stations. When there are fewer options for consumers, gas stations may have less incentive to offer competitive prices.

Tourism Impact

During the tourist season, especially in the summer, Alaska experiences an influx of visitors. Increased demand for gasoline during this season can lead to price spikes.

Environmental Regulations

Alaska, like other states, has environmental regulations that require the use of cleaner-burning gasoline formulations, especially in certain areas to address air quality concerns. These specialized blends can be more expensive to produce. However, these are necessary to maintain the beauty and untouched feel of the wilderness.

Infrastructure Costs

Alaska’s extensive road and transportation infrastructure is often subject to challenging weather conditions and maintenance demands due to its remoteness. Thus, this can add to the overall costs associated with delivering gasoline to communities across the state.

Membership-Based Retailers

Stores like Costco, which offer lower gasoline prices to their members, can provide more affordable options in certain areas of Alaska. However, these options may not be available in all communities.

Local Economic Factors

Finally, economic conditions and employment levels in specific regions of Alaska can influence gasoline prices. Areas heavily reliant on resource industries may see price fluctuations depending on the health and economic sustainability of those industries.

While these factors collectively contribute to the fluctuation of gasoline prices in Alaska, it is essential to note that fuel prices can vary widely across the state.

Final Thoughts

Alaska’s rugged beauty, unique communities, and outdoor adventures make it a great destination as well as a great place to live. While gasoline prices in the state can be higher due to its remote location and logistical challenges, there are towns like Fairbanks, Palmer, Juneau, and Anchorage where budget-savvy individuals can find more wallet-friendly options. Factors such as local competition, membership benefits, and a focus on community needs all contribute to these lower gasoline prices. So, by understanding these dynamics, travelers and residents can make informed choices that allow them to explore Alaska’s remarkable landscapes and cultural richness without straining their budgets.

Summary of the 4 Towns With the Cheapest Gas in Alaska

RankTownRegular Gas Price
1Fairbanks$3.68 per gallon at Airport Gas and Oil
2Palmer$4.34 per gallon at Turner’s Corner
3Juneau$4.35 per gallon at Gas ‘n Go Fleet
4Anchorage$4.39 per gallon at Costco
Summary Table of the 4 Towns With the Cheapest Gas in Alaska

The photo featured at the top of this post is © Svet foto/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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