Price Relief at the Pump Incentivizes States to Hike Gas Taxes

The latest gasoline price information from Gasbuddy.Com is a mixed bag. Here is their official release for the week...

There’s good news and bad news this week. First, the good news: We’re still saving money on gasoline. The bad news? Your government wants more of it in their hands, not yours.

“Since the beginning of the year we anticipated significant savings at the pump for consumers, since most of us are paying nearly $1 less per gallon compared to 2014 fuel prices,” said Patrick DeHaan, senior petroleum analyst for GasBuddy. “For the average motorist that represents savings of about $700 over the course of the year.”

“But unfortunately more state politicians consider this an opportunity to increase gas taxes for a long menu of needs, hoping that consumers either won’t know, or won’t mind as much as they might have if retail prices were at year-ago levels,” DeHaan added.

In 2015, Iowa, North Carolina and Indiana have all increased taxes on gasoline, since March 1, April 1 and June 1 respectively. Here’s a snapshot of potential tax increases currently under consideration across the U.S:

California: On July 1 the diesel excise tax is scheduled to increase by 13-cents per gallon; the gasoline excise tax will be reduced.

Georgia: Any day now, Gov. Nathan Deal is expected to sign a transportation bill that would increase Georgia’s combined federal and state gasoline tax from 44 cents per gal., to 53 cpg. That bill would allow cities and counties to increase excise taxes on fuel by up to 6 cents per gal. The national average is 48.8 cents.

Idaho: A transportation bill was introduced that would increase the diesel fuel tax by 12 cents per gal.

Louisiana: Fuel taxes could increase by 10 to 25 cpg., over and above the state’s current 20-cent rate. For a period beginning July 1, 2015 and ending in 2025 the tax would be 25 cents if the average monthly price of gas is less than $3/gal.; 15 cents if the retail average is between $3 and $4 per gal.; and 10 cents if the average is more than $4/gal. Another proposal would allow cities and counties to add 4-cents to the existing 20-cent state tax.

Missouri: A bill is pending that would increase the existing fuel tax by 2 cents/gal., per year for three years.

Montana: Just introduced a bill to increase the gasoline tax by 5 cents per gal.