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Reply #41: In Johnstown Pa it is holding at $3.55 a gallon, through Pittsburgh it is $3.45 [View All]

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happyslug Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Oct-20-11 10:18 AM
Response to Reply #23
41. In Johnstown Pa it is holding at $3.55 a gallon, through Pittsburgh it is $3.45
Generally Johnstown is about a Nickel more expensive then Pittsburgh, do to being both a smaller market AND being at the end of the Mississippi River transport system (Most Gasoline comes up the Mississippi, then the Ohio, then to Pipelines, then by Tanker trucks to your local Gasoline Station, thus Gasoline is Cheaper the closer you get to New Orleans once you deduct the State Gasoline Tax which varies by State).

Pennsylvania State Gasoline tax is 32.4 cents per gallon, Michigan is 40.8 cents per gallon.
http://www.commonsensejunction.com/notes/gas-tax-rate.html

Thus most of the difference in price is tied in with how far up the Mississippi/Ohio the Oil had to go as opposed to the lower taxes in Pennsylvania compared to Michigan.

Side Note: While most Oil/Gasoline in the Midwest of the US goes via the Mississippi/Ohio River system, Michigan may get its Oil/Gasoline via the ST Lawrence Seaway via refineries in New Jersey as opposed to Louisiana and Texas. Given that such larger Tankers are more efficient then even the most efficient pipeline (And about the same cost as a River Barge), that could be the reason for the lower prices in Michigan then Pennsylvania.
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