Tax keeps Pennsylvania gas prices high despite nationwide downward trend, analyst says

Despite falling gas prices nationwide, Pennsylvania finds itself in the company of West Coast states with the highest average prices in the nation.

Pennsylvania’s statewide average on Monday was about $3.97 per gallon, about 42 cents higher than the national average and higher than all surrounding states, according to AAA.

That puts the state in the company of seven West Coast states, along with Alaska and Hawaii, for the highest average prices, with averages ranging from $3.91 in Utah up to $5.20 in Hawaii, according to AAA.

The state’s gas tax, about 58 cents per gallon , is primarily to blame, said Patrick De Haan, head of petroleum analysis at price-tracking service GasBuddy.

The state’s total tax is 77.1 cents per gallon, third behind Illinois (78 cents) and California (86.55 cents), according to the American Petroleum Institute. Illinois’ average is now about $3.83 per gallon, while California’s is $5.04.

According to AAA, county averages in Pennsylvania range from about $3.84 up to $4.16, with Pittsburgh area counties on the lower end:

• Allegheny: $3.94

• Armstrong: $3.88

• Beaver: $3.90

• Butler: $3.86

• Washington: $3.93

• Westmoreland: $3.97

The news isn’t all bad. In the Pittsburgh area, average gasoline prices fell nearly 3 cents per gallon in the last week, to an average of $3.92, according to GasBuddy’s survey of 731 stations. That’s 5.5 cents per gallon less than a month ago, but about 38 cents per gallon more than a year ago.

Prices in the Pittsburgh area range from $3.59 up to $4.19, a difference of 60 cents per gallon, according to GasBuddy.

GasBuddy reported the national average falling about 12 cents per gallon in the past week, to $3.52. That’s about 23 cents per gallon less than a month ago, but 14 cents higher than a year ago.

“All the metrics look very positive for motorists as this week is likely to continue seeing falling gasoline prices, with many areas falling to the lowest level since Russia’s invasion of Ukraine in February,” De Haan said. “It’s entirely possible the national average price of gasoline could fall under $3 per gallon by Christmas, which would be a huge gift to unwrap for motorists after a dizzying year at the pump.”

Neighboring areas and their current gas prices, as reported by GasBuddy:

• Akron: $3.31, down 13 cents per gallon from last week.

• Cleveland: $3.36, down 14.5 cents per gallon from last week.

• West Virginia: $3.46, down 6.6 cents per gallon from last week.

The national average price of diesel fell about 8 cents per gallon in the last week to $5.20, according to GasBuddy.

De Haan said diesel prices came down in 47 of 50 states, which he said will be providing “well-needed relief ahead of the holidays and helping to stem the rise in inflation.”