Posted on June 23, 2022
The rising cost of diesel increases prices on everyday goods driving inflation even higher. On July 1st, taxes on diesel fuel are scheduled to increase by 23% or 9.1 cents per gallon, bringing the total tax to 49.2 cents, up from 40.1 cents. The tax on diesel includes a flat 29 cent per gallon rate and a variable tax set each year on July 1st that is calculated by multiplying the prior year’s average wholesale price by 8.1%.
In March, House and Senate Republicans initiated the call for tax relief to ease prices at the pump – we were able to reach a compromise with our colleagues and the governor to suspend the 25 cent per gallon excise tax on gasoline. Since then, we have continued to call for relief for over-taxed citizens.
Should the General Assembly take action to suspend the scheduled 9 cent per gallon diesel tax increase?