State gas, diesel taxes on rise in 2017
Drivers are paying more at the pump this year, according to the U.S. Energy Information Administration’s (EIA) latest figures, which have revealed a 4.5 percent in average state gas and diesel taxes over this time last year.
Each state bases their tax rate changes on different methods, with some using average historical prices for fuel sold therein and others choosing to apply sales taxes to motor fuels used on-highway as well. Most of the recent tax increases have occurred in Northeastern and Midwestern states. Pennsylvania now has the highest state-run fuel tax in the nation, at 59.3 cents per gallon (cents/gal), while Alaska maintains the lowest, at 8.95 cents/gal. New Jersey has seen the highest jump since 2016, though, having increased their excise taxes on gas and diesel by 23 cents/gal and 27 cents/gal.
Diesel is even higher, though. While its rate in Alaska matches the gas rate, in most states, it continues to rise ever higher. In Pennsylvania, for example, the tax on diesel now sits at 75.8 cents/gal. California, on the other hand, actually reduced its diesel taxes by 4.5 cents/gal.
Tax increases in Michigan, New Jersey, and Pennsylvania have all contributed to the average hike. The first half of 2017 saw Northeast prices come in at 3 cents/gal higher than at the same time in 2016, while in the Midwest, they came in at 2 cents/gal higher over the same period.
The West is set to see increases as well. As of Nov. 1, 2017, California is scheduled to implement a 12 cents/gal tax increase. Given that they represent a larger portion of West Coast consumption, it will almost certainly impact average wholesale gasoline price predictions further.
