Pa. gas taxes rise, but lower 2014 prices are seen

Published on NewsOK Modified: January 1, 2014 at 1:31 pm •  Published: January 1, 2014
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HARRISBURG, Pa. (AP) — Taxes on gasoline and diesel in Pennsylvania were higher as of Wednesday, the first of three increases being imposed by a new law, but that does not necessarily mean that motorists filling up their tanks in the state will pay more at the pump than they did in 2013.

Effective on Wednesday, the state Department of Revenue said gasoline taxes are going up by 9.5 cents per gallon while diesel taxes are going up by almost 13 cents per gallon. The tax increase applies only to transportation fuels and a number of fuel distributors and gas station owners say they plan to pass along the higher wholesale cost.

However, the U.S. Energy Information Administration is expecting a slight overall drop in average U.S. gas and diesel prices in 2014.

The agency's projected U.S. annual average regular gasoline retail price is expected to fall from $3.50 per gallon in 2013 to $3.43 per gallon in 2014. Diesel fuel prices, which were projected to average $3.92 per gallon in 2013, are expected to fall to $3.77 per gallon in 2014.

AAA also expects gas prices to average slightly less in 2014 as refineries continue to expand production capacity and increasingly use North American crude oil.

According to AAA, the Pennsylvania gas average was $3.48 per gallon Tuesday, up 5 cents in the last week. Diesel was $4 per gallon. The national average was $3.32 per gallon of gas and $3.87 per gallon of diesel.

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