Tribal gas stations offer a reprieve from high prices during Iran war

FORT COLLINS, Colo. (AP) — Junelle Lewis was on the hunt for a reprieve from Seattle-area gas prices driven high by the Iran war when an app on her phone gave her the answer: the Tulalip Reservation north of the city, almost half an hour from her home. She didn't hesitate. "I purposely drove here just for the gas," Lewis said while filling up her Chevrolet Suburban at the Tulalip Market this week for $4.84 a gallon (3.8 liters) — about 75 cents less than prices near home. "Gas is ridiculous. But I have found, honestly, over the years, this gas station specifically is cheaper than a lot around here. Probably the cheapest." Lewis isn't the only driver who has discovered that some of cheapest fuel can be found on Native American reservations. Especially in California, New Mexico, New York, Oklahoma and Washington state — places with dozens of tribally owned stations, including some in busy travel corridors — tribes exempt from state fuel taxes can sell for much less than competing stations nearby. Gas prices push the drive to find bargainsApps such as Gas Buddy make finding the cheapest gas easier than ever. Nationwide, gasoline prices have risen by well over $1 since the Iran war began Feb. 28, reaching an average of $4.15 a gallon, according to AAA. Prices have been higher, topping $5 during the summer of 2022, but economists believe they will continue heading up and contribute to inflation in the weeks of ahead as geopolitical tension persists. Deals are to be found, though, at many of the almost 500 tribally owned convenience stores with gas stations across the U.S. Fifty-five are in California. At the Chukchansi Crossing Fuel Station & Travel Center between Fresno and Yosemite National Park, the $5.09 gas was 60 cents less than nearby stations. New Mexico resident Jamie Cross usually finds savings on the Mescalero Apache Reservation, where gas was as low as $3.79 this week. "I hope we don't go any higher," Cross said Thursday. In eastern New York state, on Cattauragus Indian Territory between Buffalo and Erie, Pennsylvania, the cheapest gas was about $3.65 at more than half a dozen stations — 50 cents less than in towns nearby. Tribal lands find a fuel tax escapeSo how do tribes do it? Two words: Tax exemptions. Generally tribes must pay the federal fuel tax of 18.4 cents per gallon for gasoline and 24.3 cents per gallon for diesel, and pass that cost along to drivers. State fuel taxes are a different matter. For well over a century, U.S. courts have found that states don't have authority to collect taxes from Native Americans on their land, said Dan Lewerenz, a University of North Dakota assistant law professor who specializes in Native American law. "The Supreme Court consistently held to this view and it's one of the most enduring principles in federal Indian law," Lewerenz said. Federally recognized Native American tribes are in 35 states with state gasoline taxes ranging from 9 cents per gallon in Alaska to 71 cents in California. From there, things get complicated based on where the fuel is taxed — at fuel terminals, say, or when distributors buy or sell fuel — and depending on various agreements between states and tribes. Court rulings come into play. In 2005, the U.S. Supreme Court ruled that off-reservation distributors in Kansas may charge state tax on sales to tribes for on-reservation fuel sales. But in 2019, the Supreme Court held that an 1855 treaty between the U.S. and the Yakama Nation that ensured the free travel of tribal members on roads with their goods prohibited state fuel taxes on tribal lands in Washington state. "This is a little bit different than the principle that Indians aren't taxed within Indian Country because this particular treaty reserved certain off-reservation rights for the Indians as well," Lewerenz said. Gas is just one way stores make moneyConvenience store gas sales are not as profitable as bringing people inside from the pumps. Selling snacks adds profit. But tribal businesses are increasingly offering groceries in what otherwise would be "food deserts" far from grocery stores. "Sometimes these gas stations and convenience stores are the nearest, best place to purchase affordable food or household supplies," said Matthew Klas, with the Minneapolis-based consultant Klas Robinson Q.E.D. Klas does market research and consults for tribal businesses and tracks the 245 tribes nationwide that, as of 2025, operated 496 convenience stores with gas stations. Oklahoma, California, Washington, Arizona, New Mexico, Wisconsin, Michigan and New York have the most. Some tribes, including the Choctaw Nation in Oklahoma and Oneida Indian Nation in New York, have their own store chains. Drive-through smoke shops, car washes and truck stop amenities also bring in revenue. Then there are the casinos: 205 tribally owned gas stations are located at or near casinos. Some tribal casinos are resorts with gas stations. Some tribal gas stations are casinos of a sort called "gasinos," which only have a small number of gambling machines. Tribally owned businesses are a major revenue generator for Native American reservations. On the Seattle area's Tulalip Reservation, rising gas sales were being reinvested in the community, helping to cover the cost of roads, police, health care, education, housing and other needs, Tulalip Tribes Federal Corporation CEO Tanya Burns said in a statement. "Like any government, we provide critical services to our people," Burns said. It's not just about savings"It's terrible," Todd Hall of Paden, Oklahoma, said of diesel prices as he spent about $90 to fill up his tow truck at the Citizen Potawatomi Nation gas station about 30 miles (48 kilometers) west of Oklahoma City. But, he added: "They're cheaper here than anywhere else." Hall paid $4.57 per gallon for diesel, and said the price is over $5 at many locations in the area. Mark Foster said he saves about $5 a week buying fuel at the tribally owned gas station. But he's a faithful customer because the tribe is a good community partner, he said. "I like the way the tribe operates," he said. "And the price is good too." At the Tulalip Market north of Seattle, Jared Blankenship was griping not about prices but that he was having to pay for gas at all. "Yeah, well, my electric car just got totaled," Blankenship said. "So this sucks. This is new. It's either Costco or looking wherever's cheap, like the rez. So here we are."