Average gas taxes and fees rise 4.5%

by Talk Business & Politics staff ([email protected]) 232 views 

Average gasoline taxes and fees levied by states have risen 4.5% to 27.9 cents per gallon as of July 1, from the same time last year, according to the U.S. Energy Information Administration. The lowest state tax on gas is 8.95 cents per gallon in Alaska, and the highest is 59.3 cents per gallon in Pennsylvania. The federal gas tax, which hasn’t changed since 1993, is 18.4 cents per gallon, and gasoline buyers pay this tax along with state taxes.

In Arkansas, the gas tax is 21.5 cents per gallon, and it hasn’t changed in more than 16 years.

State taxes on diesel are on average 28.6 cents per gallon and range from 8.95 cents per gallon in Alaska to 75.8 cents per gallon in Pennsylvania. In Arkansas, the tax is 22.5 cents. The federal tax on diesel is 24.4 cents per gallon.

Since July 1, 2016, New Jersey has seen the highest increases on fuel taxes, rising 23 cents per gallon for gasoline and 27 cents per gallon for diesel, according to the EIA. Over the same period, Iowa decreased its gasoline and diesel taxes and fees by 1.2 cents per gallon and 1 cent per gallon, respectively, and California reduced its diesel taxes by 4.5 cents per gallon.

“Governments use the largest portion of fuel tax revenues to build and maintain transportation infrastructure, effectively making the taxes equivalent to road user fees,” according to the EIA.