Some friends on Facebook were talking about the higher cost of gasoline where they live and I concluded that yes their gas is higher but their wages are higher too so it evens out. Then I wondered if the local cost of gas might be at least somewhat proportional to the local wage level.
The data below is from the sources : Average gasoline prices by state from AAA site and household median income for 2010-2011 from the Census. I estimated annual gasoline costs based on a typical 12,000 annual miles driven and 25 MPG. Then I figured the % of median income that this annual gas spending represents. Of course I assume that annual miles driving and MPG vary some by location as well but I'm ignoring that for simplicity.
Here are all the numbers :
| Gas | Median income | Annual gas | gas / income | |
| Alabama | $3.37 | $44,191 | $1,619 | 3.7% |
| Alaska | $4.07 | $65,720 | $1,955 | 3.0% |
| Arizona | $3.55 | $48,484 | $1,705 | 3.5% |
| Arkansas | $3.43 | $39,832 | $1,645 | 4.1% |
| California | $3.99 | $59,209 | $1,913 | 3.2% |
| Colorado | $3.55 | $61,154 | $1,704 | 2.8% |
| Connecticut | $4.01 | $67,784 | $1,923 | 2.8% |
| Delaware | $3.66 | $53,805 | $1,755 | 3.3% |
| District of Columbia | $3.88 | $56,895 | $1,860 | 3.3% |
| Florida | $3.59 | $47,353 | $1,724 | 3.6% |
| Georgia | $3.49 | $46,867 | $1,675 | 3.6% |
| Hawaii | $4.37 | $61,308 | $2,097 | 3.4% |
| Idaho | $3.82 | $49,293 | $1,833 | 3.7% |
| Illinois | $3.84 | $55,534 | $1,841 | 3.3% |
| Indiana | $3.62 | $47,526 | $1,737 | 3.7% |
| Iowa | $3.61 | $52,781 | $1,732 | 3.3% |
| Kansas | $3.58 | $48,451 | $1,717 | 3.5% |
| Kentucky | $3.57 | $43,860 | $1,714 | 3.9% |
| Louisiana | $3.48 | $44,484 | $1,671 | 3.8% |
| Maine | $3.76 | $49,572 | $1,807 | 3.6% |
| Maryland | $3.67 | $66,928 | $1,760 | 2.6% |
| Massachusetts | $3.73 | $62,634 | $1,792 | 2.9% |
| Michigan | $3.68 | $50,118 | $1,764 | 3.5% |
| Minnesota | $3.58 | $58,094 | $1,720 | 3.0% |
| Mississippi | $3.39 | $37,427 | $1,628 | 4.3% |
| Missouri | $3.47 | $49,615 | $1,665 | 3.4% |
| Montana | $3.71 | $43,607 | $1,778 | 4.1% |
| Nebraska | $3.64 | $52,498 | $1,746 | 3.3% |
| Nevada | $3.72 | $55,559 | $1,783 | 3.2% |
| New Hampshire | $3.68 | $68,187 | $1,766 | 2.6% |
| New Jersey | $3.58 | $68,071 | $1,718 | 2.5% |
| New Mexico | $3.56 | $44,819 | $1,707 | 3.8% |
| New York | $3.92 | $52,683 | $1,880 | 3.6% |
| North Carolina | $3.52 | $44,393 | $1,690 | 3.8% |
| North Dakota | $3.70 | $52,176 | $1,776 | 3.4% |
| Ohio | $3.54 | $48,567 | $1,698 | 3.5% |
| Oklahoma | $3.50 | $48,137 | $1,681 | 3.5% |
| Oregon | $3.87 | $52,758 | $1,859 | 3.5% |
| Pennsylvania | $3.66 | $52,103 | $1,756 | 3.4% |
| Rhode Island | $3.80 | $54,879 | $1,825 | 3.3% |
| South Carolina | $3.30 | $43,566 | $1,586 | 3.6% |
| South Dakota | $3.70 | $50,977 | $1,777 | 3.5% |
| Tennessee | $3.41 | $41,979 | $1,635 | 3.9% |
| Texas | $3.51 | $49,172 | $1,683 | 3.4% |
| Utah | $3.74 | $63,329 | $1,794 | 2.8% |
| Vermont | $3.75 | $53,914 | $1,800 | 3.3% |
| Virginia | $3.46 | $64,095 | $1,662 | 2.6% |
| Washington | $3.93 | $61,241 | $1,884 | 3.1% |
| West Virginia | $3.63 | $41,073 | $1,741 | 4.2% |
| Wisconsin | $3.66 | $53,605 | $1,756 | 3.3% |
| Wyoming | $3.67 | $55,367 | $1,760 | 3.2% |
Overall I don't see all that much of a correlation between gas prices and incomes at the state level.
Here are the states listed with their respective ranks as far as gas costs and incomes and then the delta between the gas cost and income rankings :
| gas | income | delta | |
| Alabama | 50 | 44 | -6 |
| Alaska | 2 | 5 | 3 |
| Arizona | 37 | 35 | -2 |
| Arkansas | 47 | 50 | 3 |
| California | 4 | 12 | 8 |
| Colorado | 38 | 11 | -27 |
| Connecticut | 3 | 3 | 0 |
| Delaware | 26 | 20 | -6 |
| District of Columbia | 7 | 14 | 7 |
| Florida | 31 | 39 | 8 |
| Georgia | 43 | 40 | -3 |
| Hawaii | 1 | 9 | 8 |
| Idaho | 10 | 32 | 22 |
| Illinois | 9 | 16 | 7 |
| Indiana | 29 | 38 | 9 |
| Iowa | 30 | 22 | -8 |
| Kansas | 34 | 36 | 2 |
| Kentucky | 35 | 45 | 10 |
| Louisiana | 44 | 42 | -2 |
| Maine | 12 | 31 | 19 |
| Maryland | 22 | 4 | -18 |
| Massachusetts | 15 | 8 | -7 |
| Michigan | 21 | 29 | 8 |
| Minnesota | 32 | 13 | -19 |
| Mississippi | 49 | 51 | 2 |
| Missouri | 45 | 30 | -15 |
| Montana | 17 | 46 | 29 |
| Nebraska | 27 | 25 | -2 |
| Nevada | 16 | 15 | -1 |
| New Hampshire | 20 | 1 | -19 |
| New Jersey | 33 | 2 | -31 |
| New Mexico | 36 | 41 | 5 |
| New York | 6 | 24 | 18 |
| North Carolina | 40 | 43 | 3 |
| North Dakota | 19 | 26 | 7 |
| Ohio | 39 | 34 | -5 |
| Oklahoma | 42 | 37 | -5 |
| Oregon | 8 | 23 | 15 |
| Pennsylvania | 25 | 27 | 2 |
| Rhode Island | 11 | 18 | 7 |
| South Carolina | 51 | 47 | -4 |
| South Dakota | 18 | 28 | 10 |
| Tennessee | 48 | 48 | 0 |
| Texas | 41 | 33 | -8 |
| Utah | 14 | 7 | -7 |
| Vermont | 13 | 19 | 6 |
| Virginia | 46 | 6 | -40 |
| Washington | 5 | 10 | 5 |
| West Virginia | 28 | 49 | 21 |
| Wisconsin | 24 | 21 | -3 |
| Wyoming | 23 | 17 | -6 |
Again I don't see much consistent correlation between gas cost and income. Sometimes its pretty close with 19 states having ranks within 5 places. However theres 15 states where the ranks are 10 or more apart. Connecticut and Tennessee are exactly the same ranks. Virginia has the widest difference with the 46th cheapest gas and 6th highest income.
Clearly you can't just assume that gas prices are proportional to incomes.
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