Here's Why You'll Pay Higher Gas Prices Whatever The Market

Discussion in 'Off-Topic' started by ALS, May 15, 2017.

  1. ALS

    ALS Super Moderator Staff Member

    The average gasoline tax in the U.S. is 49.5 cents per gallon, according to data from the American Petroleum Institute. That’s not too bad as far as averages go, but it has been climbing over the last five years and it will continue rising as states lose hope that the federal government will chip in for infrastructure construction and maintenance, and transportation.

    Washington has been wary of raising the federal fuel tax. So wary, in fact, that the last time it adjusted the rate was more than two decades ago. Meanwhile, international oil prices have been jumping up and down, cars have become much more fuel efficient, and inflation has been biting into state income from gas taxes. In addition, there is a whole new challenge in the shape of electric vehicles that in the future will increasingly undermine fuel sales income for states.

    Left with no options, 22 states have raised their fuel tax since 2012 and more will likely resort to the unpopular measure in the coming years. Since January 2017, Governing magazine notes, three states have passed laws to increase the gas excise tax: California, Tennessee, and Indiana. In California, the total tax, state plus federal, is now 57.20 cents per gallon. In Tennessee, the figure is 39.80 cents. In Indiana, the overall tax consumers pay on a gallon of gas is 51.24 cents.

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  2. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Al:

    I do not believe the tax hikes are a bad thing overall. Given the U.S. populaces automotive purchasing habits - read Pickup trucks and CUVs, those same owners are subsidizing the infrastructure that we wold normally have to pay for out of our own pocket taxes. It reminds me of gambling. If the people that gamble want to continue to throw their money away, at least the rest of us get a little something for it.

    TheFordFamily and BillLin like this.
  3. Jay

    Jay Well-Known Member

    Higher fuel taxes affect the price of everything because transportation costs are embedded in everything. It's just the thing a struggling economy doesn't need and the tax increase can't be avoided even if you don't have a car. In my home state of Idaho we got a whopping 6c tax increase that elevated us from a mid-pack state to one of the top 5 highest gasoline sales tax rates. Far higher than neighboring states with similar weather and number of road miles to maintain. And that's just the beginning of the increases. Many hefty increases are scheduled to kick in down the road.

    The Idaho Transportation Dept. spent some of the money on chip-seal work that was completely botched on two major highways. The rock chips didn't stick and anybody traveling those highways gets a rock shower every time another vehicle passes. I have to travel one of the roads and I got my windshield cracked and the new one cracked a week later. This added "incompetence tax" just rubs salt into the wounds.

    Seems to me there are a couple of options if a dept (including the transportation dept.) has a shortfall of money: 1)raise more taxes 2) do things more efficiently. Politicians never consider the 2nd option.
    TheFordFamily, JonNC and BillLin like this.
  4. thunderstruck

    thunderstruck Super Moderator

    That's certainly true of Illinois.
  5. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    It's simple. Raise taxes on gasoline, lower taxes on diesel fuel. Edwin has spoken.
    TheFordFamily, JonNC and xcel like this.
  6. Blackbelt

    Blackbelt Well-Known Member

    In the corrupt state of Pennsylvania, our total gas tax(state plus federal) is 76.4 cents per gallon.In 2016, PA had the highest state gas tax in the nation. So what did the politicians do? Well, hell, they tacked on another 8 cents a gallon on 1/1/2017. I am glad i have a Prius C
    xcel likes this.
  7. ALS

    ALS Super Moderator Staff Member

    I saw the writing on the wall back in 2005 and 2008 and will never get caught with my pants down again as they say when it comes to fuel prices.

    Like the Pennsylvania Turnpike, you will never see me on that road ever again due to the exorbitant toll rates.
    xcel likes this.
  8. MaxxMPG

    MaxxMPG Hasta Lavista AAA-Vee Von't Be Bach

    NJ used to be the place to go, but they unleashed the tax hounds, too. Now NJ and NY (outside of the city) are about the same price, and PA is about .10 to .20 a gallon higher. I actually fill up before I get to PA so I don't need to stop when within the state.
    ALS and xcel like this.
  9. Blackbelt

    Blackbelt Well-Known Member

    New Yorks gas tax is .15 lower than PA. NJ is .21 lower.
    ALS, our benevolent former governor,aka the mobster Ed Rendell, wanted to give a huge pile of cash to his union buddies at SEPTA and PAT. He decided that tolling Interstate 80 would do nicely to generate that cash, plus have some leftover for "roads and bridges". (sound familiar). Well, Congress gave him a giant middle finger when he asked for approval. Of course, like any good tax and spend liberal, he had already "spent" the money he intended to get from tolling. So he went to the turnpike people and made them cough up $450 million per yearto Penndot. They raise the tolls every year because they HAVE to give all this money to the black hole at PENNDOT. I' like you, i stay off that turnpike at all costs.
    I can still remember the secretary of transportation in 1997, Brad Mallory, saying that if the legislature passed the fee and gas tax increases he wanted, then PA would have "world class roads". Well, Brad got his increase, and we got the Ho Chi Minh trail. The one consistency with politicians is if their lips are moving, they are telling lies.
  10. ALS

    ALS Super Moderator Staff Member

    Blackbelt, I remember when you could go from Monroeville (Pittsburgh) to Breezewood for $4.40. I hadn't been on the Turnpike for a while and got a real shock when the cost had gone up to $8.80. That was when I made the decision that the small increase in travel time wasn't worth using the Turnpike. It now costs $14.90 cash, $10.59 EZ-Pass for that same trip of 105 miles. You did noticed they are making a big deal that they increased the speed limit to 70 mph along most of the Turnpike?

    I took back roads up to Carlyle ACAA Museum last year and it only took me an extra 30 minutes and four less miles each way over using the Turnpike. By staying off the Turnpike I saved almost $30 round trip and probably got slightly better fuel mileage due to the lower speeds.
    xcel likes this.
  11. Blackbelt

    Blackbelt Well-Known Member

    I have been able to rediscover the fun of driving thanks to my Prius C. My previous commuting route to work was 15 minutes of 2 lane roads to Rt 28, and 40 minutes on 28. 36.5 miles one way.
    Now, i drive saxonburg blvd 2 lane road with 30-45 PSL for 35 minutes, then 15 minutes on 8 and 28. 29.1 miles. Not only am i putting 14 fewer miles a day on my car, but my mileage has increase over 10MPG between the 2 types of commutes. Dring 28 every day was highly stressful, lots and lots of douchebaggery. Now, i enjoy the winding 2 lane road with beautiful scenery and sane speeds. Much less stressful of a drive.
    BillLin likes this.
  12. RedylC94

    RedylC94 Well-Known Member

    I just did exactly that last week---in Jersey, despite the recent increase there.

    South Carolina has low fuel taxes and correspondingly crumbling roads.
    jcp123 likes this.
  13. jcp123

    jcp123 Caliente!

    Guessing you haven't been to LA or OK...SC is strictly average as far as road quality goes.

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