The Department of Treasury announced today (August 28) a gas tax increase of 9.3 cents per gallon will go into effect on October 1.

Lower fuel trends have been exacerbated by the COVID-19 pandemic. The decline in the consumption of gasoline is currently at a total of 38.7 percent from March to May.

“As we’ve noted before, any changes in the gas tax rate are dictated by several factors that are beyond the control of the administration,” said State Treasurer Elizabeth Maher Muoio in a press statement.  “The law enacted in 2016 contains a specific formula to ensure that revenue is meeting a certain target. When it does not, the gas tax rate has to be adjusted accordingly in order for us to meet our obligation under the law and fully fund the state’s many pressing transportation infrastructure needs. Highway fuels consumption took a significant hit in FY 2020 because of the economic downturn caused by the COVID-19 pandemic.”

Due to the formula explicitly outlined in the law, the PPGR tax rate on gasoline and diesel fuel will increase from 30.9 cents to 40.2 cents for gasoline and from 34.9 cents to 44.2 cents for diesel fuel.

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