Fuel Taxes on Rise in July

Starting July 1, fuel taxes will increase in several states, including California, Illinois, Indiana, Missouri, and Virginia. New Jersey faces controversy with its new plan to hike both fuel taxes and electric vehicle (EV) fees.

California’s New Rates

In California, diesel tax will climb to 45.4 cents a gallon from 44.1 cents. Gasoline tax will go up to 59.6 cents from 57.9 cents. The California Department of Tax and Fee Administration confirmed these changes.

Illinois Follows Suit

Illinois will also raise its fuel taxes. Diesel will cost 54.5 cents a gallon, up from 52.9 cents. Gasoline and gasohol taxes will rise to 47 cents from 45.4 cents. The Illinois Department of Revenue has set this yearly increase to keep up with costs.

Indiana’s Increment

In Indiana, the tax on gasoline will increase by a penny to 35 cents a gallon. Diesel and biodiesel taxes will each rise by two cents, hitting 59 cents a gallon. This was announced by the Indiana Department of Revenue.

Missouri’s Steady Increase

Missouri will increase its motor fuel taxes by nearly 3 cents, moving from 24.5 cents to 27 cents a gallon. This applies to both diesel and gasoline. Another hike to 29.5 cents is set for July 1, 2025, according to the Missouri Department of Revenue.

New Jersey’s Controversial Plan

New Jersey plans to raise fuel taxes by about 1.9 cents each year for five years. Governor Phil Murphy signed the law in March. It also includes a new $250 fee for electric vehicles, increasing by $10 annually until it reaches $290. Diesel and gasoline taxes will also rise from their current levels of 49.3 cents and 42.3 cents. This plan faces opposition from trade groups like Americans for Tax Reform, who argue it will harm businesses.

Virginia’s Modest Hike

Virginia will see a modest rise in fuel taxes. Diesel will go from 30.8 cents to 31.8 cents a gallon. Gasoline taxes will increase from 29.8 cents to 30.8 cents. Blended diesel and blended gas will each rise by one cent.

Maryland’s Decrease

Maryland, however, will reduce its motor fuel taxes. Gas and gasohol will be taxed at 46.1 cents a gallon, down from 47 cents. Diesel and biodiesel taxes will drop to 46.85 cents from 47.75 cents. This was reported by the state comptroller’s office.

How to Save on Fuel Costs

With these increases, truckers can take steps to avoid paying more than necessary:

1. Fuel Up in Cheaper States: States like Oklahoma often have lower fuel taxes. Plan routes to fuel up in these states whenever possible.
2. Monitor Fuel Prices: Use apps and websites to track fuel prices along your route. Prices can vary significantly even within the same state.
3. Fuel Efficiency: Maintain your vehicle to ensure optimal fuel efficiency. Regular maintenance can help you get more miles per gallon.
4. Fuel Cards: Consider using fuel cards that offer discounts and rewards. Many trucking companies provide these to their drivers.
5. Wait to Fuel Up: If you’re near a state border and heading to a state with lower taxes, wait to fuel up until you cross into the cheaper state.

Funding the Future

Revenue from these tax hikes will fund infrastructure projects. State treasurers will set specific tax amounts each fiscal year to ensure roads and transportation systems are maintained.

Drivers should prepare for higher costs at the pump in these states. Despite some pushbacks, these increases are seen as necessary for improving infrastructure. Truckers, by planning, can mitigate the impact of these tax hikes and keep their costs down.

Bloom Services, Inc

Here at Bloom Services, we are 100% OTR trucking. We offer newer trucks, and cover trailer and cargo liability. We do not pay base on mileage, rather we pay 82% gross load. This is beneficial for strong drivers with a decent work ethic, you will earn based on the actual load rather than mere miles. Our drivers average $3,000 plus a week take home pay after all expenses, like fuel, truck rent, etc. If you have Grit, and the endurance to consistently deliver loads and run for at least three weeks at a time, you can take home $150K a year. If you are interested, apply now.