Several states including California, Illinois, Indiana, Missouri, Virginia, and New Jersey are implementing fuel tax increases effective July 1, affecting both diesel and gasoline prices, which will complicate budgeting for fuel expenses and impact overall transportation costs. New Jersey is also introducing an annual fee for electric vehicles, adding further financial burdens. As fuel surcharges become increasingly volatile, shippers will rely on PRIMO to provide expert rate stabilization and ensure they are paying reasonable rates amidst these changes.

Fuel Tax Increases

California & Illinois: Starting July 1, California will see diesel taxes rise to 45.4 cents per gallon and gasoline taxes to 59.6 cents12. Illinois will also increase its fuel taxes, with diesel going up to 54.5 cents per gallon and gasoline to 47 cents.

Indiana & Missouri Adjustments

Modest Hikes: Indiana’s gasoline tax will increase by a penny to 35 cents per gallon, and diesel by two cents to 59 cents. Missouri will raise its motor fuel taxes to 27 cents per gallon, a nearly 3-cent hike3.

New Jersey’s Controversial Plan

EV Fees & Tax Hikes: A new law in New Jersey is set to gradually increase fuel taxes and introduce an annual EV fee, starting at $250 and increasing by $10 each year4.

Infrastructure Funding

Tax Revenue Utilization: The additional revenue from these tax hikes is earmarked for funding infrastructure projects across the states5.

Reference: ttnews.com