Indiana vs Kentucky gas prices
Regular gas is $0.08 a gallon cheaper in Indiana — $1.20 on a 15-gallon fill-up. The two share a border, so that gap is worth knowing before you cross it.
Indiana
Kentucky| Grade | IN | KY | Diff. | |
|---|---|---|---|---|
| Regular | $3.62 | $3.70 | $0.08IN | Indiana |
| Midgrade | $4.19 | $4.24 | $0.05IN | Indiana |
| Premium | $4.72 | $4.68 | $0.04KY | Kentucky |
| Diesel | $5.36 | $4.96 | $0.40KY | Kentucky |
Where the $0.08 gap actually comes from
None of it is tax. This is the case people assume never happens: Kentucky is dearer at the pump while taxing a gallon $0.27 less than Indiana. The whole gap is the cost of the fuel itself — refinery proximity, pipeline access and state blend rules — and the tax difference is quietly shrinking it.
Fuel, refining, distribution and marginFederal and state taxes Pre-tax figures are estimates — see the note below.
What the gap is worth
Based on today’s $0.08 per-gallon difference, which moves week to week. Use the fuel cost calculator for your own mileage and vehicle.
Prices by metro area
State averages hide a lot. These are the cheapest metros AAA reports on each side.
Other comparisons
Frequently asked questions
Is gas cheaper in Indiana or Kentucky?
Regular gas is cheaper in Indiana, at $3.62 a gallon against $3.70 in Kentucky — a gap of $0.08, or 2.2%. On a 15-gallon fill-up that is $1.20. Figures are AAA daily state averages for 2026-08-02.
Why is gas more expensive in Kentucky?
Not because of tax — Kentucky actually levies $0.27 a gallon less than Indiana. The whole $0.08 gap, and more, is the cost of the fuel itself: refinery proximity, pipeline access and state fuel-blend rules. Tax policy is narrowing this gap rather than causing it.
Is diesel cheaper in Indiana or Kentucky?
Diesel is cheaper in Kentucky at $4.96 a gallon, against $5.36 in Indiana — $0.40 a gallon apart. Note that this is the opposite way round from regular gas, because the two states tax the two fuels differently.
Is it worth crossing from Kentucky into Indiana to fill up?
If you are already near the line, yes: a 15-gallon fill saves about $1.20. Driving out of your way for it rarely pays — at $3.70 a gallon and 25 mpg, a 4-mile round trip would eat the whole saving in fuel alone, before your time.