Connecticut Officials Announce Diesel Tax Hike, Increasing the Price Even More

Connecticut’s Department of Revenue Services this week announced a coming tax hike on diesel fuel, resulting in a nine cent increase.

The current tax in the state is 40.1 cents on diesel fuel, but it will increase to 49.2 cents per gallon in about two weeks, beginning July 1.

“In accordance with this statutory obligation, I am hereby notifying you that, effective July 1, 2022, the tax rate on diesel fuel will be 49.2 cents per gallon,” Commissioner of Revenue Services Mark Boughton announced in a letter to lawmakers. 

“You have to remember that Connecticut does not have a highway use tax or highway use fee for in-state trucking companies or those small delivery companies nor do we have tolls,” Boughton told WTNH last week. 

Dept. of Revenue Services announces $.09 increase per gallon on state diesel tax. @GovNedLamont was challenged to suspend it. Instead – He says child tax credit, car tax cut and property tax credit are coming. That did not happen. Follow @WTNH @ctcapitolreport for the latest. pic.twitter.com/peSKgJmDSj

— jodi latina (@jodilatina8) June 15, 2022

The announcement comes as gas prices continue to reach record highs nationwide. As of Wednesday, the national gas price average stood at $5.014 for regular gas, but diesel set another record high on Wednesday, reaching $5.780, which is $2.564 higher than it was one year ago. 

The current average price for regular gas is $4.983 in Connecticut, but diesel’s average in the state is well over $6.00 per gallon, standing at $6.170. And with the gas tax hike, it will only spike even higher. 

While the Biden administration contends there is no “quick fix” for relief at the pump, some states, such as Florida, are taking action to assist Americans as the Biden administration continues along the course of abolishing American energy independence. 

"At what point do these [gas] prices…become unsustainable?"

ENERGY SEC. GRANHOLM: "Yeah, I think the prices are unsustainable…there's not a quick fix. However, your point about also accelerating our progress toward clean energy is very, very important." pic.twitter.com/rQVP54oeeX

— RNC Research (@RNCResearch) June 15, 2022

In October, for example, Floridians will enjoy a month-long gas tax holiday, which will lower the price of gas by about 25 cents:

The Florida Motor Fuel Tax Relief Act of 2022 reduces the tax rate on motor fuel by 25.3 cents per gallon. Passed by the Florida Legislature and signed into law by Governor Ron DeSantis, the tax rate reduction begins Saturday, October 1, and extends through Monday, October 31. The tax rate reduction applies to all gasoline products, any product blended with gasoline and any fuel placed in the storage supply tank of a gasoline-powered motor vehicle.

Unlike sales tax, which is assessed on the taxable price of goods and services, fuel taxes are assessed on gallons when product is removed from a terminal or imported into Florida. These taxes are remitted to the state by licensed terminal suppliers and importers who then pass the fuel taxes down through the supply chain to the ultimate consumer at the pump. Under Florida law, all segments of the petroleum industry must pass along the reduced tax rate, so the consumer receives the full benefit of the tax suspension.

“We’re doing $200 million in gas tax holiday, so that will reduce the fuel tax on October 1st by about 25 cents a gallon,” DeSantis said at the time of the announcement.