Pennsylvania Gas Prices Fall to $4.39 a Gallon as Oil Slide Reaches the Pump
Pennsylvania’s average gasoline price has fallen to $4.39 a gallon. AAA reported on Nov. 6 that the state average was $4.39 and the national average $4.07. Pennsylvania is 32 cents above the national average, but prices keep falling.
The national average fell 12 cents in a week. AAA reported on Nov. 5 that the national average was $4.10, down for a 12th straight day. It has fallen more than 26 cents from $4.37 a month ago. Pennsylvania fell only about 4.5 cents over the same period, a smaller drop than the national average. But prices are still well above a year ago. The national average is more than $1 above $3.08 a year ago, and Pennsylvania is $1.18 above $3.21 a year ago. According to AAA, it is the first time the November average has topped $4.
The reason is crude oil. AAA said the decline over the past two weeks followed crude oil falling into the high $80s per barrel. International oil prices plunged more than 8% in a day on Wednesday, and Patrick De Haan, head of petroleum analysis at GasBuddy, said that drop would start reaching pump prices on Thursday and Friday.
Demand is also falling. The U.S. Energy Information Administration reported that U.S. gasoline demand fell last week from 8.98 million barrels a day to 8.38 million. GasBuddy said demand weakened as refinery maintenance season ended and cooler weather arrived.
The Philadelphia area is falling behind. A GasBuddy survey published Nov. 2 found Philadelphia’s average rose 6.8 cents to $4.36, the opposite of the national trend. Prices vary widely within the state. In the GasBuddy survey, the cheapest station in Pennsylvania was $3.78 a gallon and the most expensive $5.19. Western Pennsylvania averaged $4.62, above the state average.
Savings at the pump are still modest. At the national average, filling a 15-gallon tank saves about $1.80 compared with a week ago. In Pennsylvania, the smaller drop means smaller savings. Diesel is far more expensive: the national average is $6.26 a gallon and Pennsylvania’s is $6.57.
Whether the decline continues is uncertain. Crude oil rebounded Thursday. Brent rose 3.8% to $98.29 a barrel, and West Texas Intermediate rose 2.7% to $90.52. De Haan cautioned that the downward trend may not last. Gasoline is still more than $1 a gallon above a year ago. AAA updates its gasoline price averages daily. The question is how much of Wednesday’s crude plunge will show up at pumps next week.