Gasoline taxes up 4.5 percent nationwide


WASHINGTON, D.C.
October 3, 2017 8:28am


•  Why Californians might not want to grumble

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The simple average of taxes and fees on gasoline levied by the states and the District of Columbia in effect as of July 1, was 27.9 cents per gallon, up 4.5 percent from the same time last year, according to the latest update of state gasoline and diesel fuel taxes data by the U.S. Energy Information Administration.

California drivers are paying a lot more than that, but they are not paying the highest taxes and fees on gasoline, despite grumbling to the contrary.

The EIA says the combined taxes and fees – state, local and federal – on a gallon of gas in California is 55.26 cents. Of that, 36.86 cents goes to the state.

But the state’s tax and fee burden is not the highest. Consider Indiana, at 41.8 cents; Michigan, 39.38 cents; New Jersey, 37.15 cents; Pennsylvania, 59.3 cents, and Washington, 49.52 cents.

The federal tax is 18.4 cents per gallon.

These taxes and fees range from a low of 8.95 cents per gallon in Alaska to a high of 59.3 cents per gallon in Pennsylvania. Gasoline buyers in the United States pay these taxes at the pump in addition to the federal tax of 18.4 centers per gallon, which has remained unchanged since 1993.

State taxes on diesel tend to be somewhat higher—averaging 28.6 cents per gallon and ranging from 8.95 cents per gallon in Alaska to 75.8 cents per gallon in Pennsylvania. The federal tax on diesel of 24.4 cents per gallon is slightly higher than the federal tax on gasoline.

Since July 1, 2016, New Jersey had the highest increases in their state excise taxes for gasoline and diesel fuel, which were up by 23 cents per gallon and 27 cents per gallon, respectively. Over the same period, Iowa reduced its gasoline and diesel taxes and fees by 1.2 cents per gallon and 1.0 cent per gallon, respectively, and California reduced its diesel taxes by 4.5 cents per gallon to 16 cents in taxes plus 4.16 cents in fees.

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