Fuel Prices in Vermont: What Drives Pump Costs in the Green Mountain State
Vermont consistently ranks among the pricier states for fuel, and current pump data confirms it. Regular gasoline averages $4.02 per gallon, mid-grade runs $4.614, premium reaches $5.059, and diesel sits highest at $5.20 per gallon. For comparison, the US national average for regular is around $3.867 — meaning Vermonters pay roughly 15 cents more per gallon than the typical American driver.
Why Vermont Fuel Costs More
Vermont produces no crude oil and has no refineries within its borders. Every gallon burned in the state is trucked or piped in from outside, much of it routed through terminals in neighboring states and Canada. That logistics distance adds a built-in transportation premium that low-population rural states like Vermont can't escape, especially in the more remote Northeast Kingdom.
Taxes are the second big factor. Vermont layers a per-gallon excise tax on top of two assessments: the Motor Fuel Transportation Infrastructure Assessment (a percentage-based fee tied to the wholesale price) and a Motor Fuel Tax Assessment that funds cleanup of leaking underground storage tanks. Because part of the levy floats with wholesale prices, Vermont's tax bite rises when crude markets climb — a structure quite different from fixed-cents states. Add the federal excise tax of 18.4 cents on gasoline (24.4 cents on diesel), and a meaningful slice of every receipt is government revenue rather than fuel.
Diesel's $5.20 figure reflects this layering plus seasonal heating-oil demand. In a cold-climate state where many homes burn fuel oil, distillate supply tightens in winter, pushing diesel and heating oil up together. Vermont's diesel premium over regular — about $1.18 per gallon — is wider than the national norm and signals just how heating-driven the local distillate market is.
How Vermont Compares to Other States
Vermont is not the most expensive state, but it sits firmly in the upper tier. Drivers here pay far more than in low-tax, oil-rich states. Wyoming, an energy producer with modest taxes, typically posts some of the cheapest pump prices in the country. Arizona and Michigan swing more with regional refinery conditions, while high-tax states like Pennsylvania — home to the nation's steepest gas tax — can rival or exceed Vermont. The pattern is consistent: states without local production and with price-linked taxes pay the most, and Vermont checks both boxes.
The Trend for Vermont Drivers
With only a single metro area and a largely rural road network, Vermont sees little of the dense-market competition that pulls prices down in big cities. Stations along Interstates 89 and 91 tend to be cheaper than isolated rural pumps, where a lack of nearby competitors lets prices drift higher. The wide spread between regular ($4.02) and premium ($5.059) — over a dollar — also reflects that premium and mid-grade move in smaller volumes, so retailers keep fatter margins on them.
Because a portion of Vermont's fuel tax is tied to wholesale prices, expect pump costs to track the broader crude market closely. When global oil eases, Vermont benefits; when it spikes, the percentage-based assessment amplifies the pain. For budgeting, the practical takeaway is simple: fill up on regular near the interstates, and brace for diesel and heating-oil costs to peak in the depths of winter.
FAQ
Why is gas so expensive in Vermont?
Vermont has no in-state oil production or refineries, so all fuel is imported, adding transport costs. It also applies a per-gallon excise tax plus two assessments — one tied to wholesale prices — which raises the total tax burden above many other states.
How much is diesel in Vermont right now?
Diesel averages about $5.20 per gallon, the highest of all grades. The premium over regular gasoline is roughly $1.18, driven partly by Vermont's heavy winter heating-oil demand, which competes for the same distillate supply.
Is Vermont gas more expensive than the US average?
Yes. Regular gas in Vermont averages $4.02 per gallon versus the US national average of about $3.867 — roughly 15 cents higher per gallon, reflecting the state's import reliance and tax structure.