Pennsylvania’s June average gasoline price was higher than all its neighbor states except New York.
While Pennsylvania’s gasoline price has decreased from its 2022 record high, the long-term picture shows an average price—up 84 cents a gallon since 2019—constantly above the national average.^[1]
- Pennsylvania’s Independence Day average gasoline price for regular unleaded was $3.67, 15 cents above the national average of $3.52.^[2]
The commonwealth has the third-highest gasoline tax nationwide at a staggering 57.6 cents per gallon (cpg).^[3]
High gasoline prices will, no doubt, impact Pennsylvanians and tourists visiting the Keystone State this summer.

Pennsylvania Ranks High on Gasoline Prices

In June, Pennsylvania had the second-highest average gasoline price among bordering states, just four cents shy of New York’s.^[4]

Pennsylvania levies the nation’s third-highest gasoline tax at 57.6 cpg. This rate has remained steady since 2018 except for 2023, when rapid inflation temporarily increased it to 61.1 cpg.^[5]
The commonwealth has a ten-year history of gasoline prices higher than the national average. Pennsylvania’s highest recorded average gasoline price was $5.07 in June 2022.^[6]
- Declines since the 2022 historical high aside, Pennsylvania’s average gasoline price increased from approximately $2.80 in June 2019 to $3.64 in June 2024 (an 84-cent hike).^[7]

Why are gasoline prices so high?
- Taxes: Federal and state taxes account for 14 percent of gasoline prices.^[8]
- Regulations: Stricter state regulations and fuel standards result in higher gasoline prices.^[9]
- Mass Transit Subsidies: In Pennsylvania, millions of dollars are diverted from driver fees and gasoline taxes to mass transit every year.^[10] Drivers are subsidizing alternative forms of transportation, putting more pressure on gasoline taxes to generate revenue for roads.

Conclusion

Pennsylvania gasoline prices remain high despite price decreases from 2022 because the state levies the third-highest tax in the nation.
States with lower gasoline prices are more attractive to summer travelers on road trips. High taxes could negatively impact the commonwealth’s tourist economy.
Pennsylvania lawmakers should end subsidies to mass transit systems that redirect driver fees and other transportation funding from roads so they can lower the gasoline tax.

^[1]American Automobile Association (AAA), “Pennsylvania Average Gas Prices,” accessed July 4, 2024. https://gasprices.aaa.com/?state=PA.

^[2]Kelly Anne Smith and Korrena Bailie, “Today’s Gas Prices by State,” Forbes Advisor, accessed July 4, 2024. https://www.forbes.com/advisor/personal-finance/gas-prices-by-state/ .

^[3]Chelsie Strub, “Pennies at the Pump: Does the Gas Tax Change Make a Difference?” WNEP/ABC, January 3, 2024 [update], https://www.wnep.com/article/news/local/pennsylvania-gas-tax-reduction-department-of-revenue-57-cents-gas-prices/523-2ead5dc7-b4df-4212-b4a0-95f15dcda59e; 53 Pa.B. 7682, “Department of Revenue: Rates of Tax on Aviation Gasoline and Jet Fuel for 2024; Oil Company Franchise Tax Rate for 2024; Alternative Fuels Tax Rates for 2024,” December 9, 2023, https://www.pacodeandbulletin.gov/Display/pabull?file=/secure/pabulletin/data/vol53/53-49/1703.html.

^[4]Smith and Bailie, “Today’s Gas Prices by State.”

^[5]Pennsylvania Department of Revenue, “Motor Fuel Tax Rates,” accessed June 26, 2024, https://www.revenue.pa.gov/Tax%20Rates/Pages/MFT%20Rates.aspx.

^[6]Pennsylvania Department of Revenue, “Motor Fuel Tax Rates”; American Automobile Association (AAA), “Pennsylvania Average Gas Prices.”

^[7]GasBuddy, “Historical Price Charts – Pennsylvania,” accessed July 3, 2024, https://www.pennsylvaniagasprices.com/retail_price_chart.aspx; Smith and Bailie, “Today’s Gas Prices by State.”

^[8]American Petroleum Institute, “Gas Prices Explained: Five Fast Facts About U.S. Gasoline Prices,” accessed June 26, 2024. https://www.api.org/oil-and-natural-gas/energy-primers/gas-prices-explained.

^[9]Julia Haines, Elliot Davis Jr., and Chris Gilligan, “States with the Highest Gas Prices,” U.S. News and World Report, May 24, 2024. https://www.usnews.com/news/best-states/articles/states-with-the-highest-gas-prices.