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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%.