Why Is Gas So Expensive in Pittsburgh?

GAS PRICES AT A SUNOCO IN BELLEVUE IN EARLY APRIL | PHOTO BY OLLIE GRATZINGER

The pain at the pump hasn’t let up yet.

The American Automobile Association, or AAA, reported last week that the national average has exceeded $4 per gallon for the first time since the record high in 2022, when the price per gallon of regular unleaded fuel reached $5.071 following Russia’s invasion of Ukraine.

In Pennsylvania, the average is sitting at $4.185 per gallon for regular unleaded as of April 7, with some gas stations in the Pittsburgh area climbing even higher.

“Pennsylvania has the fourth highest gas tax in the U.S. at 57 to 59 cents per gallon,” says Lynda Lambert, a spokesperson for AAA East Central. “Only California, Illinois and Washington state have higher gas taxes.

Gas taxes typically fund the maintenance of roads, bridges and other transportation infrastructure. 

(“Which is a lovely thing to remember when you hit a pothole the size of Lake Erie driving around the state,” remarks one user on the Pittsburgh subreddit.)

Lambert adds that prices are usually higher in major metropolitan areas like Pittsburgh because of higher demand. 

Pittsburgh and surrounding areas in particular also see higher fuel transportation costs due to its position in between major refineries.

“You especially see this when you look at the northern counties, where prices are among the highest in the state,” says Jim Garrity, public and legislative affairs manager of AAA’s East Central division. In Erie, Warren and Crawford counties, for example, the average cost of regular gasoline has surpassed $4.30.

Local drivers may notice that prices vary significantly from gas station to gas station. According to GasBuddy, an app that lets consumers track fuel prices, the least expensive gas in the Pittsburgh area as of April 7 is at a GetGo in Ross Township. Meanwhile, an Exxon in Brighton Heights is still showing prices at $4.19 per gallon for regular fuel. One gas station on Washington Boulevard in Homewood was charging $4.29 per gallon on April 8.

“Even though the price of gasoline is determined by crude oil costs, taxes, distribution and marketing, ultimately, gas stations set their own prices. They can charge whatever they want,” Lambert says. “Some of that depends on location, demand and whether they make a lot of money from their gas or if they make money off an attached convenience store. For example, sometimes you will see more upscale gas stations with nice convenience stores charging less for gas because they know people are spending money inside the store.”

Officials say the conflict in the Middle East is driving prices skyward, especially as the Strait of Hormuz, a crucial maritime chokepoint connecting the Persian Gulf to the Indian Ocean that facilitates the daily passage of approximately one fifth of the world’s crude oil, remains closed.

“Oil prices have risen dramatically in the aftermath of the conflict in Iran,” Garrity says.

He adds that about 50% to 60% of what we spend at the pump is directly related to crude oil prices, which is trading at more than $115 per barrel as of April 7.

“It was in the $60-$70 range before the conflict erupted,” he says.

Summer also brings more demand to the pump as folks head out on road trips, which can also increase the price of fuel. Plus, summer blend gasoline has been flowing into markets, Garrity explains, which is a more expensive gasoline to produce. 

“The combination of those two factors already drives prices up this time of the year, but the dramatic spikes we’ve been seeing are due to the Iran conflict’s impact on oil prices,” he says. 

If the conflict continues and the vital strait remains closed, finance experts say the national average could reach $5 per gallon by mid-April, surpassing the record set four years ago.

“It’s impossible to predict how long these increases will last. A lot of it will depend on how long the conflict continues,” Lambert says. 

In the meantime, Pennsylvania lawmakers have proposed suspending the state’s 57-cent-per-gallon gas tax for 60 days in an effort to provide a small respite to drivers feeling crushed under soaring prices. 

A temporary, two-week ceasefire between the U.S. and Iran announced April 8, which will reopen the Strait of Hormuz, could also bring prices down, but experts say consumers won’t see the change right away. Not only does it usually take a couple of weeks to refine crude oil into gasoline, transport it and deliver it to gas stations, according to Business Insider, but gas stations also buy fuel in advance, which means they’re likely to sell their more expensive inventory first. 

Additionally, the massive disruption to the global energy supply chain caused by the war will be difficult to reverse, experts say. Continued market volatility and the temporary nature of the ceasefire could mean gas prices remain high for a while, or even continue to rise.