Drivers Find Tribal Gas Stations Worth the Trip

Drivers looking to avoid steep fuel prices are increasingly turning to gas stations located on Native American reservations, where fuel can sometimes cost significantly less than at nearby stations.

Junelle Lewis recently made a trip from her home in the Seattle area after noticing lower prices listed on a gas-price tracking app. The app showed a much cheaper option at the Tulalip Reservation, located north of the city and roughly a 30-minute drive away. Lewis decided the trip was worth it. At the Tulalip Market, she filled her Chevrolet Suburban for $4.84 per gallon, roughly 75 cents cheaper than what she would have paid closer to home. She said the high cost of fuel made the drive worthwhile.

Many other drivers have discovered similar savings at tribally owned gas stations across the country. Reservations in states such as California, New Mexico, New York, Oklahoma, and Washington have dozens of tribal fuel stations, some positioned along major travel routes. Because tribes are not subject to state fuel taxes on their land, they are often able to sell gasoline at lower prices than nearby competitors. Apps like GasBuddy help drivers locate these cheaper stations.

Gas prices nationwide have climbed sharply since the Iran war began on Feb. 28. According to AAA, the national average has risen by more than a dollar, reaching about $4.15 per gallon. Although prices were even higher during the summer of 2022, when they surpassed $5 per gallon, economists say costs could keep rising and add to inflation if geopolitical tensions continue.

Across the United States there are nearly 500 tribally owned convenience stores that sell gasoline. California alone has 55 of them. At the Chukchansi Crossing Fuel Station and Travel Center, located between Fresno and Yosemite National Park, gas recently cost $5.09 per gallon—about 60 cents cheaper than nearby stations. In New Mexico, Jamie Cross often fills up on the Mescalero Apache Reservation, where gas was selling for as little as $3.79 last week. In eastern New York, on the Cattaraugus Indian Territory between Buffalo and Erie, Pennsylvania, several stations were offering gas for about $3.65 per gallon, roughly 50 cents less than surrounding towns.

The primary reason for the lower prices is tax policy. Tribal stations still pay the federal fuel tax, which is 18.4 cents per gallon for gasoline and 24.3 cents per gallon for diesel, and that cost is passed on to customers. However, state fuel taxes generally do not apply on tribal land.

Legal precedent has supported this arrangement for more than a century. Courts in the United States have repeatedly ruled that states lack authority to impose taxes on Native Americans conducting business on their own land. Dan Lewerenz, a Native American law specialist at the University of North Dakota, said the Supreme Court has consistently upheld that principle, making it one of the most longstanding rules in federal Indian law.

Federally recognized tribes are located in 35 states. State gasoline taxes vary widely, from about 9 cents per gallon in Alaska to as much as 71 cents in California, which helps explain why the price difference between tribal stations and nearby competitors can sometimes be substantial.

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