Budget Could Cause Spike In Gas Prices
By: Jim Madalinsky
Updated: February 6, 2013
According to AAA, the average price for a gallon of gas in Pennsylvania is $3.68. That's 14 cents above the national average. If Governor Corbett's transportation budget goes through Pennsylvania could become one of the most expensive states for gas in the country.
The national average for a gallon of gas has jumped 25 cents in the last month.
"I don't think we'll ever see it below $3.50 again or absolutely below $3.00 again," Dan Culp of Mifflinburg says.
That may be true if Governor Tom Corbett's transportation budget goes through as planned.
Pennsylvania pays the 12th most in the nation for a gallon of gas according to AAA.
Governor Corbett hopes to raise the tax on oil and gas companies that was previously capped when gas was $1.25 per gallon.
Experts say that could increase gas costs by about 25 cents per gallon over the next few years, moving Pennsylvania into the top 3 in nation.
"We're at the mercy of the oil companies and whoever sets the prices. I don't like it better than anybody else. It just takes money out of people's wallets," Culp says.
While rising gas prices add to the pain at the pump for consumers, businesses that rely on deliveries are concerned.
"Honestly the people who hurt most from a gas price increase are the employees. We try not to take it out on the customer," Andrea Hammel of Peterman's Florist says.
Hammel says deliveries take up about 85% of her orders.
If gas prices do spike, she says increasing costs to consumers will be the last resort.
"You want people to buy your product. You want them to buy your service and to do that you have to offer them at reasonable prices and that's very difficult to do when you're paying hundreds of dollars a week in gas," Hammel says.
But no matter how high the prices go, Hammel says her company will find a way to make it work.
"It's going to be tough, but we'll figure it out," Hammel says.
Governor Corbett plans to use the extra tax money from oil and gas companies to pay for transportation repairs in the state.
The state legislature has until the end of the fiscal year in June to approve the budget.
The national average for a gallon of gas has jumped 25 cents in the last month.
"I don't think we'll ever see it below $3.50 again or absolutely below $3.00 again," Dan Culp of Mifflinburg says.
That may be true if Governor Tom Corbett's transportation budget goes through as planned.
Pennsylvania pays the 12th most in the nation for a gallon of gas according to AAA.
Governor Corbett hopes to raise the tax on oil and gas companies that was previously capped when gas was $1.25 per gallon.
Experts say that could increase gas costs by about 25 cents per gallon over the next few years, moving Pennsylvania into the top 3 in nation.
"We're at the mercy of the oil companies and whoever sets the prices. I don't like it better than anybody else. It just takes money out of people's wallets," Culp says.
While rising gas prices add to the pain at the pump for consumers, businesses that rely on deliveries are concerned.
"Honestly the people who hurt most from a gas price increase are the employees. We try not to take it out on the customer," Andrea Hammel of Peterman's Florist says.
Hammel says deliveries take up about 85% of her orders.
If gas prices do spike, she says increasing costs to consumers will be the last resort.
"You want people to buy your product. You want them to buy your service and to do that you have to offer them at reasonable prices and that's very difficult to do when you're paying hundreds of dollars a week in gas," Hammel says.
But no matter how high the prices go, Hammel says her company will find a way to make it work.
"It's going to be tough, but we'll figure it out," Hammel says.
Governor Corbett plans to use the extra tax money from oil and gas companies to pay for transportation repairs in the state.
The state legislature has until the end of the fiscal year in June to approve the budget.
Comments
Wow...a republican raising taxes!!
John H.
February 6, 2013 at 6:03 pm
Charlotte Ames is the area's only local Health Reporter and brings you the latest medical health news weeknights. You can catch Healthcast on WTAJ News at 5:00pm and her Health Headlines report on WTAJ News at 5:30pm.