Prices at the pump continue to climb across Pennsylvania as the war with Iran disrupts the world’s flow of fuel. The average cost for a gallon of gas in the commonwealth was $4.49 as of Wednesday, with diesel hitting a record high of $6.41, according to motor club AAA.
Gas in Pennsylvania was $4.36 this time last week, and $4.07 a month ago. Pennsylvanians were paying an average of $3.12 a gallon when the US began its attacks on Iran Feb. 28. The high mark for gas prices in Pennsylvania since the start of the war was $4.69 a gallon on May 7.
The record-high diesel prices represent a sharp uptick from the $4.18 Pennsylvanians were paying on Feb. 28.
Pennsylvania’s average gas and diesel prices also remain higher than the national averages, which are currently $4.36 and $6.31, respectively.
Soaring diesel prices have a broader impact beyond the pumps. Higher diesel prices mean more expensive transportation for a long list of everyday goods. That’s because diesel is used for many freight and delivery networks. And some businesses have already passed along steeper costs to consumers in the form of added fees on online orders and packages in the mail.
Shoppers may feel more and more sticker shock, particularly in the grocery aisle. Perishable foods, like meat and produce, face one of the most immediate strains of expensive diesel because they need to be hauled in and restocked frequently—or may be harvested using farm equipment powered by the fuel.
Fuel prices across the state
Here’s a breakdown of the current average gas cost per gallon in Pennsylvania’s top 10 metro areas, with fuel prices in parentheses:
- Allentown-Bethlehem-Easton: $4.40 ($6.53)
- East Stroudsburg: $4.45 ($6.60)
- Erie: $4.52 ($6.39)
- Harrisburg-Carlisle: $4.43 ($6.44)
- Lancaster: $4.49 ($6.43)
- Philadelphia: $4.54 ($6.51)
- Pittsburgh: $4.55 ($6.41)
- Reading: $4.51 ($6.43)
- Scranton-Wilkes-Barre: $4.44 ($6.62)
- York-Hanover: $4.48 ($6.42)
How is the war impacting gas prices?
Prices shot up after the US and Israel attacked Iran in February and have not settled down since. Crude oil traffic through the key Strait of Hormuz has plunged, and Iran has refused to reopen the waterway through which a fifth of the world’s oil supply passed before the war began.
The price of oil surpassed $100 a barrel last week for the first time since July after the US military reported striking five Iranian tankers in response to attempted missile attacks on a Navy warship and after attacks by an Iranian-backed Houthi rebel group ignited fires at oil facilities in Saudi Arabia. It shot up to nearly $110 earlier this week on worries that the war will continue to clog the global flow of oil.
Gas prices will likely get worse as the strikes continue and further damage is done to the oil supply and infrastructure.
What is Washington saying about rising gas prices?
House Speaker Mike Johnson acknowledged at a press conference Tuesday the need to bring gas prices down.
But the Republican speaker said he believes the Iran conflict is entering a “new phase” as allies step up to help stabilize the region. When that happens, he said, “you’re going to see, as the president said, anytime gas prices will go down again, the cost of groceries will as well.”
Johnson said President Donald Trump expects the shift after the election, and the speaker added, “I’d love it to happen today.”
How Pennsylvania lawmakers are trying to ease pain at the pump
Pennsylvania has the fourth-highest gasoline tax in the nation, at 57.6 cents per gallon, and the highest diesel fuel tax at 74.1 cents a gallon. The national average gas tax is 33 cents a gallon.
State and federal gas taxes provide more than 70% of the state’s highway and bridge funding. Some of that money goes to municipalities to support locally owned roads, as well as the Pennsylvania Turnpike and the Pennsylvania State Police.
Since the start of the Iran war, lawmakers on both sides of the aisle have proposed legislation that would lower or pause Pennsylvania’s gas tax. The latest such effort comes from Republican state Rep. Rayn Warner (Fayette).
Why is Pennsylvania’s gas tax rate so high?
Pennsylvania’s high gas tax rate goes back to 2013, when the Republican-controlled legislature passed House Bill 1060 with bipartisan support. Then-Gov. Tom Corbett, a Republican, signed the bill into law as Act 89 of 2013.
The law eliminated the 12-cent flat tax on a gallon of gasoline and the cap on the Oil Company Franchise Tax.
Lawmakers estimated it would generate an additional $2.4 billion annually within five years for transportation infrastructure projects at the state and local level. Today, PennDOT estimates it generates $3.5 billion.
The gas tax rate increased by about 10% annually between 2014 and 2016. In 2017, the law mandated that PennDOT set the tax rate based on the annual wholesale price (AWP) of gasoline. If the AWP exceeded $2.99 a gallon, the price would go up, as it did for the first time in 2023, when the rate jumped from about 57.6 cents to 61.1 cents. If it fell below that mark, as it did in 2024 (and where it has stayed), the gas tax would go down.
In 2022, Republican Sen. Wayne Langerholc proposed legislation to stop any further increases in the gas tax. His bill passed the Senate 29-19, with 27 Republicans and two Democrats backing the bill and 19 Democrats opposing it. The bill was then referred to the House Finance Committee, where it died.
How to find the cheapest gas prices
Whether you’re traveling or at home, the website GasBuddy offers information to find the cheapest prices for gasoline.
Enter your state, city, or ZIP code to find the cheapest fuel prices in the area.
Information from the Associated Press and USA Today via Reuters Connect was used in this report.
