Nevada ranks 3rd in nation for gas prices

South Lake Tahoe has the most expensive gas in the lower 48 states, and Nevada's gas prices are the third highest, according to the latest AAA fuel gauge report.

While the nation experienced an overall decrease in fuel costs, the average gas price in the Silver State rose

5 cents to $2.93 a gallon compared to June. The average price in Reno shot up 17 cents to $3.11 a gallon while the average price in Las Vegas grew by 5 cent for $2.85 a gallon.

The national average is $2.71 a gallon, a one-cent decrease from June.

"Travel projections for the July 4th holiday were above and beyond what most analysts expected and retail gas stations certainly adjusted their prices for that," said Michael Geeser, spokesperson for AAA Nevada.

One reason Northern Nevada's gas prices differ so much from Southern Nevada is the source of its refineries, according to the AAA. Northern Nevada receives its refined gas from the Bay Area where prices are normally higher than in Southern California, the source of Southern Nevada's refined gas.

Excluding Alaska and Hawaii, Nevada has the third highest average gas price in the country, trailing California and Washington. Alaska averages $3.50. California's average of $3.14 per gallon is the highest in the lower 48 states.

Among the areas in which AAA tracks fuel prices, the highest price in the lower 48 is in South Lake Tahoe, where the average price is $3.35. The least expensive is in Greenville, S.C., where the average price of gas is $2.43 per gallon.

Meanwhile, oil barrel prices remain in the $70 range.