Analysts say as prices fall at the pump, leaders look to increas - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

Analysts say as prices fall at the pump, leaders look to increase gas taxes

Source: GasBuddy Source: GasBuddy
Chicago, IL (WAFB) -

Some analysts say the savings at the pump that consumers have seen could prompt state politicians to increase the taxes drivers pay per gallon of gas and Louisiana was noted as one of the states that could see tax increases.

"Since the beginning of the year we anticipated significant savings at the pump for consumers, since most of us are paying nearly $1 less per gallon compared to 2014 fuel prices," said Patrick DeHaan, senior petroleum analyst for GasBuddy. "For the average motorist that represents savings of about $700 over the course of the year. But unfortunately more state politicians consider this an opportunity to increase gas taxes for a long menu of needs, hoping that consumers either won't know, or won't mind as much as they might have if retail prices were at year-ago levels."

According to GasBuddy, there is a proposal in Louisiana to increase fuel taxes by 10 to 25 cents per gallon over and above the state's current 20-cent rate. Analysts said the increases could be seen starting on July 1 and last the next 10 years.

GasBuddy reported the tax would be an additional 25 cents per gallon if the average monthly price of gas drops below $3 per gallon. It would reportedly be 15 cents more if the retail average is between $3 and $4 per gallon. And, there would be another 10 cents added if gas prices rise above $4 per gallon.

Analysts added another proposal would allow cities and parishes to add four cents to the current 20-cent state tax.

According to GasBuddy, gas taxes have increased this year in Iowa, North Carolina and Indiana. California, Georgia, Idaho, Missouri, Montana, Nevada, South Dakota, Washington and Wisconsin are proposing tax increases.

It also stated Maryland and Virginia are discussing possible hikes if legislation to collect taxes from internet purchases fails in Congress.

Copyright 2015 WAFB. All rights reserved.

Powered by Frankly