According to the U.S. Energy Information Administration, South Dakota had the lowest average residential price for natural gas as of December 2014, at $7.86 per thousand cubic feet. North Dakota and Oklahoma were in second and third place, respectively, with prices of $7.95 and $8.16.
Residential natural gas prices can vary a great deal from state to state and even from month to month within a state, depending on a number of reasons. Supply and demand often drive the market. Location also affects the cost; residents of states that are closest to production and distribution facilities may pay significantly less than residents who live farther away. Other factors influencing the price include the past price that a natural gas company paid for the gas already flowing in its system.