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.

Apps 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.

So 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.

Convenience 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 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.”

Lindsey Wasson in Seattle; Sean Murphy in Oklahoma City; Susan Montoya Bryan in Albuquerque, New Mexico; and Savannah Peters in Edgewood, New Mexico, contributed.

A tanker truck delivers more fuel to a tribally owned gas station along Interstate 25 near San Felipe Pueblo, New Mexico, on Thursday, April 9, 2026. (AP Photo/Susan Montoya Bryan)

A customer opts for premium grade fuel at a tribally owned gas station near Sandia Pueblo, New Mexico, on Thursday, April 9, 2026. (AP Photo/Susan Montoya Bryan)

Darryl Smith fuels up his truck after putting extra gasoline into cans at the Tulalip Market gas station on the Tulalip Indian Reservation land, Wednesday, April 8, 2026, in Tulalip, Wash. (AP Photo/Lindsey Wasson)

FILE - Gas prices are displayed at a gasoline station, Tuesday, April 7, 2026, in Los Angeles. (AP Photo/Damian Dovarganes, File)

ISLAMABAD (AP) — Iran’s IRNA news agency said on Saturday that after progress in indirect discussions, negotiations have begun between the United States and Iran.

The country’s state-run news agency said three-party talks with the U.S., Iran and Pakistan had begun after a reduction in Israeli strikes on southern Lebanon and other preconditions being met.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

ISLAMABAD (AP) — U.S. and Iranian officials held separate talks with Pakistan’s prime minister on Saturday amid a ceasefire made fragile by deep disagreements and unabated fighting in Lebanon.

A U.S. delegation led by Vice President JD Vance and an Iranian delegation led by Parliament Speaker Mohammad Bagher Qalibaf each met with Pakistani Prime Minister Shehbaz Sharif, according to his office. No direct U.S.-Iran talks had been announced as of mid-afternoon.

Iran doubled down on parts of its earlier proposal, with its delegation telling Iranian state television it had presented some of the plan’s ideas as red lines in meetings with Sharif.

Meanwhile, Israel pressed ahead with strikes in Lebanon even as Iran conditioned ceasefire talks on a pause in fighting there. The Lebanese state-run news agency reported that Israeli strikes on Saturday killed at least three people.

The war has killed at least 3,000 people in Iran, 1,953 in Lebanon, 23 in Israel and more than a dozen in Gulf Arab states. It has largely cut off the Persian Gulf from the global economy, sending energy prices soaring and inflicting lasting damage on infrastructure in half a dozen countries in the region.

In Tehran, residents told The Associated Press they were skeptical yet hopeful about the talks after weeks of airstrikes carved a path of destruction across their country. Some said even if one is reached, the path to recovery will be long.

“Peace alone is not enough for our country, because we’ve been hit very hard, there have been huge costs, and the people have to pay for that,” 62-year-old Amir Razzai Far said in downtown Tehran.

U.S. and Iranian officials claimed leverage and issued new demands and preconditions as talks approached. President Donald Trump posted repeatedly on social media leading up to Saturday, saying Iranian officials “have no cards” to negotiate with.

“The only reason they are alive today is to negotiate!” he wrote.

He accused Iran of using the Strait of Hormuz, a key artery for global energy supplies, for extortion, and told reporters on Friday it would be opened “with or without them.”

Islamabad was deserted Saturday as security forces sealed roads and authorities urged residents to stay inside, leading the normally bustling Pakistani capital to look like it was under curfew.

Vance said on Friday the U.S. was optimistic about the talks, but warned: “If they’re going to try and play us, then they’re going to find that the negotiating team is not that receptive.”

Iranian Foreign Minister Abbas Araghchi said Tehran was entering negotiations with “deep distrust” stemming from prior strikes on Iran during previous rounds of talks. Araghchi, who is part of Iran's delegation in Pakistan, said on Saturday that his country was prepared to retaliate if it was attacked again.

Iran and the United States outlined competing proposals ahead of the weekend talks reflecting the wide gulf between the two sides on key issues.

Iran published a 10-point proposal. It called for a guaranteed end to the war and no future attacks. It demanded an end to economic sanctions and sought control over the Strait of Hormuz. It also included ending fighting against Iran’s “regional allies," explicitly calling for a halt to Israeli strikes on Hezbollah, the Iran-backed Lebanese militant group.

The United States submitted a 15-point proposal that includes restricting Iran’s nuclear program and reopening the strait.

Negotiations between Israel and Lebanon are expected to begin Tuesday in Washington, Lebanese President Joseph Aoun’s office said Friday.

Israel wants the Lebanese government to assume responsibility for disarming Hezbollah, much like was envisaged in a November 2024 ceasefire. But it is unclear whether Lebanon's army can establish a monopoly on arms or confiscate weapons from the militant group, which has survived efforts to curb its strength for decades.

Israel’s insistence that the ceasefire in Iran does not include a pause in its fighting with Hezbollah has threatened to sink the deal. The militant group joined the war in support of its backer, Iran, in the opening days of the war.

The day the truce was announced, Israel pounded Beirut with airstrikes, killing more than 300 people in the deadliest day in the country since the war began Feb. 28, according to the Lebanese Health Ministry.

Iran’s closure of the Strait of Hormuz has proved its biggest strategic advantage in the war. Commercial vessels have avoided the strait, effectively blocking the passage of oil, natural gas and fertilizer.

The spot price of Brent crude, the international standard for oil prices, was above $94 on Saturday, up more than 30% since the war started.

Before the conflict, around a fifth of the world’s traded oil typically passed through the strait on more than 100 ships a day. With the ceasefire in place, only 12 have been recorded traversing the strait.

Iran has floated charging ships passing through the strait as part of a peace deal, though the idea has been widely rejected by countries including the United States and Iran's neighbor Oman.

Metz reported from Jerusalem, Castillo from Beijing and Magdy from Cairo.

U.S. Vice President JD Vance, center, walks with Pakistan's Chief of Defence Forces and Chief of Army Staff Field Marshall Asim Munir, left, and Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar after arriving for talks with Iranian officials in Islamabad, Pakistan, Saturday, April 11, 2026. (AP Photo/Jacquelyn Martin, Pool)

Displaced families extend their hands while waiting for donated food beside the tents they use as shelters after fleeing Israeli bombardment in southern Lebanon, in Beirut, Lebanon, Thursday, April 9, 2026. (AP Photo/Emilio Morenatti)

A Lebanese civil defense worker, right, stands with a resident at the site of a building destroyed in an Israeli airstrike a day earlier in central Beirut, Lebanon, Thursday, April 9, 2026. (AP Photo/Hassan Ammar)

Police officers take position in Islamabad, Pakistan, to ensure security ahead of possible negotiations between Iran and the United States, Friday, April 10, 2026. (AP Photo/Anjum Naveed)

Vice President JD Vance walks to speak with the Press before boarding Air Force Two, Friday, April 10, 2026, at Joint Base Andrews, Md., for expected departure to Pakistan, for talks on Iran. (AP Photo/Jacquelyn Martin, pool)

A police officer walks past a billboard regarding the United States and Iran negotiations, outside a media facilitation center in Islamabad, Pakistan, Saturday, April 11, 2026. (AP Photo/Anjum Naveed)