State's gas tax increase in effect
By The Associated Press
Published: Wednesday, Jan. 1, 2014, 7:09 p.m.
HARRISBURG — Taxes on gasoline and diesel in Pennsylvania were higher as of Wednesday, the first of three increases being imposed by a new law, but that does not necessarily mean that motorists filling up their tanks in the state will pay more at the pump than they did in 2013.
Effective on Wednesday, the state Department of Revenue said gasoline taxes are going up by 9.5 cents per gallon while diesel taxes are going up by almost 13 cents per gallon. The tax increase applies only to transportation fuels and a number of fuel distributors and gas station owners say they plan to pass along the higher wholesale cost.
However, the Energy Information Administration is expecting a slight overall drop in average U.S. gas and diesel prices in 2014.
The agency's projected annual average regular gasoline retail price is expected to fall from $3.50 per gallon in 2013 to $3.43 per gallon in 2014. Diesel fuel prices, which were projected to average $3.92 per gallon in 2013, are expected to fall to $3.77 per gallon in 2014.
AAA expects gas prices to average slightly less in 2014 as refineries continue to expand production capacity and increasingly use North American crude oil.
According to AAA, the Pennsylvania gas average was $3.48 per gallon on Tuesday, up 5 cents in the last week. Diesel was $4 per gallon. The national average was $3.32 per gallon of gas and $3.87 per gallon of diesel.
The higher fuel taxes are the key element of major transportation funding legislation approved in November by Gov. Tom Corbett and state lawmakers in an effort to stem a rising backlog of bridges, highways and mass transit agency facilities in need of repairs or modernization.
The tax and fees increases, scheduled to be fully in effect within four years, are designed to raise an additional $2.3 billion a year for transportation purposes. Supporters say the new money is long overdue to address the demands of safety, quality of life and commerce, although opponents in the Legislature protested the size of the tax increases.
The law had support from major business groups and the AARP. Labor unions supported it, although they protested one element that would roll back wage requirements on some projects.
Under the law, another wholesale fuel increase will take place in a year and then again two years after that, in 2017.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Filings leave Corbett facing new challenge
- Congressional races set for Pennsylvania
- 2 Democrats challenge for congressman’s seat in 12th District
- Contract arranged Pennsylvania Game Commission director’s early exit
- Gas tax could factor into Pennsylvania gubernatorial race
- Pennsylvania man pleads guilty to threat against Obama
- Pa. turnpike crash lesson for planners
- Retired Pa. Game Commission chief to get $220K severance payment
- Military veteran ID cards granted on honor system
- Pennsylvania drug program portrayed as a life-saving tool
- CSX makes deal with state on shipments of hazardous materials