Year-end Electricity, Utility (Piped) Gas, and Gasoline Prices in the Philadelphia Area (PDF)

Philadelphia area consumers paid more for electricity (31.3 percent) and utility (piped) gas (15.9 percent) than the U.S. city average, while the price of gasoline was similar to the average prices charged throughout the country in December 2007 as measured by the Consumer Price Index, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.  Regional Commissioner Sheila Watkins noted that over the last 10 years, local consumers have consistently paid higher-than-average prices for electricity and utility (piped) gas in December, while year-end cost for a gallon of gasoline was closer to the average prices nationally.  (See table A.)

A kilowatt-hour (kWh) of electricity cost Philadelphia area consumers $0.151 in December 2007, 26.9 percent more than in 1997.  Nationwide, electricity prices averaged $0.115 in December 2007.  Electricity prices have generally trended upwards over the decade ended December 2007, while the gap between the local price and the U.S. average remained consistent over this time period.  (See chart A.)  As mentioned, the average price per kilowatt-hour in the Philadelphia area was 31.3 percent higher than the national average in 2007, similar to the 32.2-percent differential recorded in 1997.

A therm—a measure of constant heating value—of utility (piped) gas in the Philadelphia area averaged $1.485 in December 2007 compared with $1.281 in the nation as a whole.  With the exception of December 2000, local area utility (piped) gas prices have been above the national year-end price levels over the last decade.  (See chart B.)  The average price per therm in the local area was 15.9 percent higher than the U.S. average in 2007; in 1997, the difference was 19.6 percent.

Chart A.  Average prices for electricity, United States and Philadelphia area, December 1997-2007

Chart B.  Average prices for utility (piped) gas, United States and Philadelphia area, December 1997-2007

Gasoline prices are historically subject to rapid fluctuations; however, over the last six years, the price per gallon in the Philadelphia area has risen steadily—from $1.093 in December 2001 to $3.095 in December 2007.  The December 2007 price locally was $0.689 higher than the $2.406 recorded just last year and $2.060 higher than the $1.035 reported in December 1998—the lowest year-end level over the last 10 years.  When compared to the nation as a whole over the last decade, year-end gasoline prices in the Philadelphia area were essentially the same as those for the nation with the exception of December 2001, when prices were 8.9 percent lower.  (See chart C.)

Chart C.  Average prices for gasoline, United States and Philadelphia area, December 1997-2007

The Philadelphia-Wilmington-Atlantic City, Pa.-N.J.-Del.-Md. area includes Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties in Pennsylvania; Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, and Salem Counties in New Jersey; New Castle County in Delaware; and Cecil County in Maryland.

Additional information

Information in this release will be made available to sensory impaired individuals upon request.  Voice phone: 202-691-5200; TDD message referral phone number: 1-800-877-8339.

For personal assistance or further information on the CPI data, as well as other Bureau data, contact the Mid-Atlantic Information Office at 215-597-3282 from 8:30 a.m. to 12:00 p.m. and 1:00 p.m. to 3:30 p.m. ET.

Technical Information

Average prices for electricity, utility (piped) gas, and gasoline are published monthly for the U.S. city average, the 4 regions, the 3 population size classes, 10 region/size-class cross-classifications, and the 14 largest local index areas.  For electricity, average prices per kilowatt-hour (kWh) and per 500 kWh are published.  For utility (piped) gas, average prices per therm, per 40 therms, and per 100 therms are published.  For gasoline, the average price per gallon is published.  Average prices for commonly available grades of gasoline are published as well as the average price across all grades.

Price quotes for 40 therms and 100 therms of utility (piped) gas and for 500 kWh of electricity are collected in sample outlets for use in the average price programs only.  Since they are for specified consumption amounts, they are not used in the CPI.  All other price quotes used for average price estimation are regular CPI data.

With the exception of the 40 therms, 100 therms, and 500 kWh price quotes, all eligible prices are converted to a price per normalized quantity.  These prices are then used to estimate a price for a defined fixed quantity.