How Much Is Gasoline In Texas? LNG Tells Another Tale
- 01. Gasoline in Texas: Current Prices and the LNG Divergence Explained
- 02. Current Texas Gasoline Price Breakdown
- 03. Why Gasoline and LNG Prices Diverge in Texas
- 04. Historical Price Context: 2020-2026
- 05. LNG Infrastructure Investment in Texas
- 06. Strategic Implications for Energy Market Participants
Gasoline in Texas: Current Prices and the LNG Divergence Explained
As of the week of May 25, 2026, regular gasoline in Texas averages $4.06 per gallon, up 1.73% from the prior week and 39.60% higher than one year ago when it stood at $2.91. This places Texas slightly below the national average of $4.13 per gallon but significantly above cheaper Southern states like Oklahoma at $3.44. The price divergence between Texas gasoline and LNG reflects tightening regional gas supplies driven by surging LNG export demand that has lifted feedgas prices despite Texas producing the most crude and hosting the most refineries in the U.S..
Current Texas Gasoline Price Breakdown
Gasoline prices vary by region and grade across the state. The Gulf Coast refining hub influences pricing dynamics, with metropolitan areas showing distinct premiums due to local demand and distribution costs.
| Region/Grade | Price per Gallon (USD) | Week-over-Week Change |
|---|---|---|
| Texas Statewide Average (All Grades) | $4.061 | +1.73% |
| Regular Unleaded | $3.80 | +1.5% |
| Houston Metro Area | $3.83 | +1.6% |
| Dallas-Fort Worth | $4.02 | +1.8% |
| San Antonio | $3.95 | +1.4% |
| El Paso | $4.15 | +2.1% |
Data sourced from AAA and the Energy Information Administration as of May 26, 2026. The year-over-year increase of nearly 40% reflects broader crude oil market dynamics and refining margin compression during this period.
Why Gasoline and LNG Prices Diverge in Texas
Despite Texas producing abundant natural gas from the Permian Basin and Eagle Ford Shale, LNG export terminals have created a structural premium on regional gas prices that does not translate to lower gasoline costs. Three primary factors drive this divergence:
- Export capacity expansion: Three new liquefaction trains at Freeport LNG and Cheniere's Corpus Christi terminal added significant feedgas demand, averaging over 3.5 Bcf/d since November 2025
- Production decline: Permian Basin gas production fell nearly 20% year-over-year to 10.2 Bcf/d in December 2025, tightening local supply
- Mexico pipeline exports: Deliveries to Mexico averaged 4.8 Bcf/d since November, approximately 220 MMcf/d higher than the same period in 2019
This supply-demand imbalance has pushed South Texas cash basis prices to premiums of 11-16 cents/MMBtu above year-ago levels at key hubs including Houston Ship Channel and Tennessee Zone 0. Meanwhile, gasoline prices remain anchored to crude oil futures and global refinery margins rather than domestic natural gas fundamentals.
Historical Price Context: 2020-2026
Understanding the current price environment requires examining the multi-year trajectory of Texas gasoline prices alongside LNG export growth. The table below shows annual average retail prices for all grades.
| Year | Texas Gasoline Average ($/gal) | U.S. LNG Exports from Texas (% of total) | Active LNG Trains in Texas |
|---|---|---|---|
| 2020 | $1.90 | 18.5% | 4 |
| 2021 | $2.73 | 22.1% | 5 |
| 2022 | $3.55 | 25.8% | 7 |
| 2023 | $3.15 | 27.3% | 9 |
| 2024 | $2.96 | 29.4% | 12 |
| 2025 | $2.91 | 31.0% | 16 |
| 2026 (YTD) | $4.06 | 31.0%+ | 18 |
Texas exported more than 1.3 billion cubic feet of LNG in 2023, accounting for 31 percent of U.S. LNG exports nationwide. The 273% increase in exports since 2019 correlates with rising regional gas basis prices even as gasoline prices experienced volatility from crude market shocks.
LNG Infrastructure Investment in Texas
The state's LNG ecosystem represents a $49 billion capital commitment across four terminals currently under construction, with 22 trains projected to become operational by 2028. This expansion positions Texas as the dominant hub for U.S. LNG export capacity, fundamentally altering regional natural gas market dynamics.
- Freeport LNG: Added third liquefaction train, increasing feedgas capacity by approximately 1.2 Bcf/d
- Cheniere Energy Corpus Christi: Third train operational since late 2024, contributing to 31% national export share
- Venture Global Plaquemines (Louisiana proximity): Driving Gulf Coast gas premiums that affect Texas Eastbound flows
- Tellurian Driftwood: Pending FERC approval, expected to add 2.9 Bcf/d feedgas demand when operational
The Houston Ship Channel has emerged as a critical node where LNG feedgas demand converges with industrial consumption and refining operations, creating complex pricing interactions across energy markets.
Strategic Implications for Energy Market Participants
Executives and procurement teams must recognize that Texas energy markets now exhibit bifurcated pricing dynamics: gasoline remains tied to global crude fundamentals while natural gas prices reflect intensifying LNG export competition. Investors in LNG infrastructure should monitor the 22 trains under construction through 2028, as commissioning timelines will further compress regional gas supply and sustain basis premiums.
"Over the past year, Texas' supply-demand balance has tightened significantly, lifting regional basis prices, due in part to stronger export demand" - S&P Global Platts Analytics
The boardroom-grade intelligence required for LNG market strategy demands separating gasoline price movements from natural gas fundamentals, as conflating these marketsleads to flawed procurement decisions and misallocated capital.
What are the most common questions about How Much Is Gasoline In Texas Lng Tells Another Tale?
How much is gasoline in Texas today?
As of May 25, 2026, gasoline in Texas averages $4.06 per gallon for all grades, with regular unleaded at $3.80 per gallon. Houston specifically averages $3.83 per gallon.
Why is Texas gasoline more expensive than Oklahoma?
Despite Texas producing the most crude oil and hosting the most refineries, Oklahoma offers cheaper gas at $3.44 per gallon compared to Texas's $3.80. The difference stems from regional distribution costs, state tax structures, and local demand patterns rather than production capacity alone.
Does LNG export demand affect gasoline prices in Texas?
No, LNG export demand primarily affects natural gas prices, not gasoline. Gasoline prices track crude oil futures and refining margins, while LNG demand drives natural gas basis premiums at Texas hubs. The two markets operate through fundamentally different supply chains.
What is the trend for Texas gasoline prices in 2026?
Texas gasoline prices rose 39.60% year-over-year from $2.91 in May 2025 to $4.06 in May 2026, with a 1.73% increase in the most recent week alone. This upward trend reflects crude oil market pressures and geopolitical factors including Iran-related supply concerns.
How many LNG terminals are under construction in Texas?
Four LNG terminals with combined investment of at least $49 billion are actively under construction in Texas, with 22 trains projected operational by 2028. This represents a 273% increase in export capacity since 2019 when only four trains operated.
