pennsylvania gas prices summer

Pa. Travelers’ Guide: Summer Gasoline Prices

  • 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.

10Commonwealth Foundation, “Mass Transit Bailout,” February 2024, https://commonwealthfoundation.org/wp-content/uploads/2024/02/2024-Mass-Transit-Bailout-Fact-Sheet.pdf.