As the average gasoline price in the United States soars to $4.17 per gallon—the highest since 2022—drivers nationwide are traveling long distances to refuel at gas stations located on Native American reservations. Here, fuel can be priced between 50 cents and $1.20 less per gallon than at conventional stations, according to a report from the Associated Press.
The steep rise in fuel costs is attributed to Iran's blockade of the Strait of Hormuz since March, a retaliatory measure against the "Operation Epic Fury" launched by the United States and Israel on February 28.
This week, the price of West Texas Intermediate (WTI) crude oil surpassed $101 per barrel, marking a more than 70% increase since the conflict began.
Junelle Lewis drove for half an hour to the Tulalip Reservation, north of Seattle, to pay $4.84 per gallon—approximately 75 cents less than in her local area.
Price Comparisons Across Reservations
In the Cattaraugus Indian Territory, situated between Buffalo, New York, and Erie, Pennsylvania, over six stations offered gasoline at $3.65 per gallon, about 50 cents cheaper than neighboring towns. Meanwhile, in the Mescalero Apache Reservation in New Mexico, gas prices were set at $3.79 per gallon.
Even in California, the state with the country's highest gas prices—at $5.90 per gallon in early April—the Chukchansi Crossing station, located between Fresno and Yosemite, sold gas at $5.09 per gallon, 60 cents less than nearby stations.
A driver named Hall reported paying $4.57 per gallon for diesel on a reservation, compared to over $5 at nearby conventional stations.
Savings and Legal Backdrop
Mark Foster estimates saving approximately $5 weekly by purchasing fuel at these tribal stations. Recent data indicates that collectively, drivers have saved more than $200 million in gasoline costs by turning to these stations during the ongoing conflict.
The price advantage is supported by a legal doctrine over a century old. U.S. courts have consistently ruled that states lack the authority to tax Native Americans on their own lands.
While tribes do pay the federal tax—18.4 cents per gallon of gasoline and 24.3 cents per gallon of diesel—they are exempt from state taxes, which range from nine cents per gallon in Alaska to 71 cents in California.
This situation is further framed by government-to-government agreements in place since 2007, which regulate the fiscal relationship between states and tribal nations.
"The Supreme Court has consistently upheld this view," an essential stance as inflation in the country reached 3.3% year-over-year by April 9, further straining American consumers' finances.
FAQs on Gas Prices and Native American Reservations
Why are gas prices cheaper on Native American reservations?
Gas prices are lower on Native American reservations because states do not have the authority to impose taxes on Native American lands, allowing tribes to sell fuel without state taxes.
How much can drivers save by refueling on reservations?
Drivers can save between 50 cents and $1.20 per gallon by purchasing gasoline on reservations compared to conventional stations.
What is the impact of the Strait of Hormuz blockade on gas prices?
The blockade of the Strait of Hormuz by Iran has led to a significant increase in crude oil prices, contributing to the surge in gasoline costs in the United States.