A New Year Brings Increased Gas Tax In Pennsylvania: No More Cheap Gas

A new year brings increased gas tax in Pennsylvania, WPXI reports. Is it true that Pennsylvania will have no more cheap gas?

A new report reveals that beginning on January 1, 2017, Pennsylvania gas tax will increase by eight cents per gallon. According to WPXI, the increased taxes came as a result of a change made to the Act 89 law.

The Act 89 law, created in 2013, uncapped the wholesale cost of taxes on gas and oil, which used to be capped at 12 cents, PennDOT revealed. According to WPXI, gas taxes were increased in 2015, and as a part of this new proposal, Pennsylvania will charge a minimum of $2.99 per gallon on gas, regardless of the wholesale price.

Pennsylvania drivers will allegedly be paying 76 cents per gallon in taxes at the pump, including federal taxes. Currently, Pennsylvania already has the highest gas tax in the whole country at 50 cents per gallon.

Richard Kirkpatrick, PennDOT Communications Directory, revealed that the increased gas taxes will benefit bridge and roadway construction, infrastructure, and the Pennsylvania State Police.

According to Gas Buddy, Pennsylvania does not hold the record for the highest current gas prices, despite it having the highest gas taxes. The majority of California has gas prices ranging anywhere from $2.64 per gallon and up. Pennsylvania is currently charging roughly anywhere from $2.43 to $2.53 per gallon.

Texas, on the other hand, shows the majority of the state only charging $1.80 to $1.91. The map shows a sporadic amount of very low gas prices throughout the United States, paying just $1.80 per gallon or less.

According to Pennsylvania Gas Prices, PA’s gas prices were at it’s highest in 2008, peaking at $4.05 per gallon. The following year, Pennsylvania’s recorded the lowest gas prices in the past 10 years at just $1.64 per gallon.

Let’s take a look way back in history! Did you know that Pennsylvania gas prices prior to 1975 was under $0.50? Around 1978, gas went up above $1.00 for the first time in history. A large incline occurred from 2002 to 2007, where Pennsylvania’s gas prices rose nearly $2.00, Energy.gov revealed.

Bankrate reveals that currently Pennsylvania has the highest gas tax. The state with the second highest gas tax is Washington. Washington gas tax is currently 62.9 cents per gallon, combined with state and federal taxes.

Next, New York shows a gas tax of 60.72 cents per gallon, followed by Hawaii with a gas tax of 60.39 cents per gallon. Also in the top ten states with the highest gas tax are California, Connecticut, Florida, North Carolina, and Rhode Island.

Lastly, Nevada makes the top ten list with a gas tax of 52.25 cents per gallon. If it weren’t for county taxes, state cleanup, and inspection fees, Nevada’s gas tax would only be 23 cents per gallon.

Although Pennsylvania’s gas tax increase seems awful to many, Kirkpatrick stresses how beneficial the additional cost will be to the state, Penn Live reports.

“It’s crucial for the economy of the state and the local economy as well. The reason it is so important is Pennsylvania has a very large and old network of roads and bridges.”

Gas Buddy senior petroleum analyst Patrick DeHaan has predicted that gas prices will likely jump up overnight.

“Drivers will see an eight-cent jump. Gas stations don’t have enough margin to digest any increase in tax other than maybe a penny or two. It’s always passed onto the consumer.”

Pennsylvania’s gas tax is currently 50 cents per gallon, but after the eight cent tax increase and 18.4 cents per gallon for federal tax, the state will demand a whopping 76.4 cents per gallon gas tax.

Dave Black, president and CEO of the Harrisburg Regional Chamber and CREDC, says that businesses should not be impacted with this increase.

“I don’t like paying more for gas, but at least with this I know where it’s going, what it is being used for, plus it is not only improving our highways, but it is putting a lot of people to work in the construction industry. Short term pain, long term gain as the saying goes.”

[Featured Image by Gene J. Puskar/AP Images]