Statewide average updated daily • Source: AAA
Pennsylvania consistently ranks among the highest taxed states for gasoline in the country, typically running 20 to 40 cents above the national average. The state has the second or third highest effective fuel tax burden in the nation depending on the year, driven by a complex tax structure that includes both a fixed excise component and a variable oil company franchise tax tied to the wholesale price of fuel. When fuel prices rise nationally, Pennsylvania’s effective tax rate rises with them.
Pennsylvania’s fuel tax structure is one of the most complex in the country. The state charges a flat excise tax plus an Oil Company Franchise Tax that is calculated as a percentage of the average wholesale price of fuel. When wholesale prices are high, the franchise tax component increases automatically, creating a situation where Pennsylvania drivers pay higher taxes precisely when fuel is already most expensive nationally.
The combined state tax burden in Pennsylvania regularly exceeds 57 cents per gallon, placing it among the top three most heavily taxed states in the country. These revenues fund Pennsylvania’s extensive highway and bridge infrastructure — the state has more structurally deficient bridges than any other state, and fuel tax revenue is a critical funding source for repair programs.
Pennsylvania is served by multiple fuel supply routes including pipelines from the Gulf Coast and refineries in the Philadelphia area, which historically gave the eastern part of the state good supply access. However the closure of several Philadelphia-area refineries in recent years — most notably following the 2019 fire at the Philadelphia Energy Solutions refinery — has reduced local refining capacity and increased dependence on pipeline supply from the Gulf Coast.
Did you know? Pennsylvania’s Oil Company Franchise Tax is one of the most unusual fuel tax mechanisms in the country — because it is tied to wholesale prices, Pennsylvania drivers effectively pay higher taxes when crude oil prices are high, amplifying price spikes. Pennsylvania also has more miles of highway than almost any other state and more structurally deficient bridges than any other state — the high fuel taxes are directly connected to the enormous cost of maintaining this aging infrastructure.
Compare today’s average in Pennsylvania with nearby states to understand regional price differences.
Learn more about what drives gas prices across the United States.
Crude oil prices are the biggest driver of what you pay at the pump. For U.S. and global crude oil production data updated from EIA figures, see Oil Production Live.