AAA Mid-Atlantic: Philadelphia is Seeing Three at the Pump

Philadelphia 5-county gas price average tops $3/gallon for first time in six months

PHILADELPHIA, PA (April 25, 2019) For the first time in six months, Philadelphia-area drivers are now paying an average of $3 per gallon at the pump, according to AAA’s gas price site. Pennsylvania’s gas average topped $3 on April 23. The last time the Philadelphia 5-county gas price average was at $3 was on October 24, 2018.

“Philadelphia-area drivers continue to see increases at the pump due to three factors – the switchover to (more expensive) summer-blend gasoline, an increase in demand for gasoline and rising crude oil prices,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Should crude oil prices continue to sit at 2019 high prices, we could see gas prices continue to rise. However, we do not expect more expensive gas prices to impact summer travel. Prices are on par with this time last year and Americans hit the road in record numbers for summer travel.

Since January 1, the gas price average in Philadelphia is up 46 cents and is a penny more than a year ago. The average price of gas across the state is up 54 cents since the beginning of the year and up three cents compared to this same time last year. Gas prices in the Philadelphia 5-county area are just 14 cents away from the 2018 high price of $3.15 (May 26, 2018).

AAA notes that while all area gas prices have seen increases in recent months, Philadelphia drivers are paying more at the pump than their neighbors in South Jersey and Delaware.

How Did We Get to $3?

• The switchover to summer-blend gasoline – Mandated by the EPA, summer-blend gasoline has a lower Reid Vapor Pressure (RVP) to prevent excessive evaporation when outside temperatures rise. Reducing the volatility of summer gas decreases emissions that can contribute to unhealthy ozone and smog levels. A lower RVP also helps prevent drivability problems such as vapor lock on hot days, especially in older vehicles. However, the summer-blend is also more expensive to produce, and that cost is passed on to the motorist. Refiners must switch to summer-blend gasoline May 1 to September 15.
• Increased demand – With the winter season behind us, motorists are coming out of hibernation (so to speak) and returning to the roads.Seasonal demand increases are typical this time of year and will likely continue in the coming months.
• Increased crude oil prices - Crude oil prices have remained above the $65 mark (highest level in 2019) following an announcement by the Trump administration on Monday (April 22) that the U.S. will not renew sanction waivers for countries importing oil from Iran in an attempt to end all oil exports from that country. Such waivers, granted to allow some countries to continue making limited oil purchases from Iran, are set to expire on May 2.Decreases in Iranian oil exports would tighten the supply in the global market, which has already seen decreases as a result of the U.S. sanctions against Iran and Venezuela, along with OPEC’s reduced production.

AAA Tips to Maximize Fuel Economy

• Observe the speed limit. Not only is it safer, it can help you save money.
• Lose the weight. The heavier your car, the more fuel it uses.
• Brake and accelerate gradually. Avoid jackrabbit starts and stops.
• Drive during cooler parts of the day. Cooler, denser air can boost power and mileage.
• Maintain recommended tire pressure. Low pressure reduces fuel economy and can damage tires.
• Keep luggage off the roof - heading out on a road trip this season? A loaded roof rack affects the vehicle aerodynamics and creates extra drag that reduces fuel economy.
• Keep up-to-date on vehicle maintenance - be sure to follow the vehicle manufacturer’s recommended maintenance schedule, and do not ignore vehicle warning lights that indicate something is wrong. Warning lights can signal problems that will greatly decrease a car’s fuel efficiency.

AAA Gas Price Saving Resources

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.
• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 
• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 
• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 

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AAA provides automotive, travel and insurance services to 57 million members nationwide and more than three million members in Pennsylvania.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android.  For more information, visit www.AAA.com.