LUZERNE COUNTY, Pa. — The State Department of Revenue announced 2024 will alleviate some pain at the pump. The state's tax on fuel will decrease, thanks to a decrease in average wholesale prices of gasoline.
The amount? Four cents: from 61 cents per gallon to 57 cents.
Does four pennies add up in the wallets of drivers? Newswatch 16's Chelsea Strub spoke with a few Luzerne County residents who think so.
"Definitely," said Matt Mullock who just moved to Pittston. "I mean, I do pass several gas stations, like even on my way over here I pass four. So I look at the price at all four and see which one do I want to you know if I'm close to empty which which one of the four do I want to go to."
For Mullock, four cents matters.
"Oh, it definitely does. It definitely does because that's going to add up over time," he added.
Joe Lombardo, of West Pittston, had to agree.
"Oh, you know, you put 15 gallons of in it adds up," he said.
This tax is in place to help fund highway and bridge construction, as well as road maintenance and safety. In practice, it has also played a large role in funding the Pennsylvania State Police. That's because its revenue comprises a significant part of the multi-billion-dollar Motor License Fund, which the law enforcement agency grew to rely on and which Gov. Josh Shapiro's first budget sought to mitigate.
At first blush, a drop of four cents seems like a drop in the bucket.
For instance, a University of Kansas study of gasoline consumption by state estimated Pennsylvania went through roughly 4.5 billion gallons in 2021 — or about 494.46 gallons for each of its more than 9 million registered drivers.
That comes out to a rough savings of $20 — the price of about five packs of pierogis or a 24-pack of lager. Heyna or no?
Of course, actual savings will vary because the amount that people drive differs from person to person. Some Pennsylvanians surely will surpass 10,000 miles behind the wheel this year — a savings of $400 in gasoline. Others will likely only drive to and from the grocery store.
"I enjoy that, it should go down more, I mean we're the highest actually in the country... or pretty close to it. You know, so they have enough room to drop all the prices," said Lombardo.
Pennsylvania does indeed have one of the highest fuel taxes in the country. Even with its recent reduction accounted for, it still is only surpassed by Illinois (66.5 centers per gallon) and California (68.12 cents per gallon) when it comes to the rate at which gasoline is taxed, according to the U.S. Energy Information Administration.
According to GasBuddy, which tracks fuel prices throughout the country, Pennsylvania's average gas price of $3.385 per gallon is the seventh highest in the nation.
Above Pennsylvania is Alaska, $3.569; Oregon $3.758; Nevada, $3.862; Washington $4.077; Hawaii, $4.602; and California, $4.602.
"Well, just moving here from DC I think the Pennsylvania gas prices were already better. But I think the four cents difference is going to add up," said Mullock.
To learn more about the Motor Fuel Tax, you can find more information on the Department of Revenue's website by clicking here.
The states with the highest gas tax, according to the U.S. Energy Information Administration:
1.) California, 68.12 cents per gallon.
2.) Illinois, 66.5 cents per gallon.
3.) Pennsylvania, 57 cents per gallon.*
4.) Indiana, 55 cents per gallon.
5.) Washington, 52.8 cents per gallon.
*Adjusted for new information.
The states with the lowest gas tax, according to the U.S. Energy Information Administration:
1.) Alaska, 8.95 cents per gallon.
2.) Mississippi, 18.4 cents per gallon.
3.) New York, 18.47 cents per gallon.
4.) Hawaii, 18.5 cents per gallon.
5.) New Mexico, 18.87 cents per gallon.