Six states hike fuel taxes to start second half of year

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Updated Jul 8, 2017
Drivers in six states will notice higher fuel prices this week after fuel tax hikes.Drivers in six states will notice higher fuel prices this week after fuel tax hikes.

Starting July 1, truckers in six states may have noticed an uptick in diesel fuel prices in some states.

Indiana, Montana, New Jersey, South Carolina, Tennessee and West Virginia had new diesel tax rates take effect July 1.

Indiana’s previous diesel tax rate of 16 cents was raised 10 cents to 26 cents, and the state’s 11-cent surcharge on diesel was raised to 21 cents. The gasoline tax in the state was also raised 10 cents from 18 cents to 28 cents.

Montana lawmakers voted earlier this year to raise the diesel tax by 1.5 cents from 27.75 cents to 29.25 cents. The state’s gas tax increased by 4.5 cents from 27 cents to 31.5 cents.

In New Jersey, the second part of a diesel fuel tax increase took effect July 1. In January, the diesel rate increased from 17.5 cents to approximately 36.5 cents. As of July 1, the diesel tax in the state increased another 8 cents to 44.5 cents per gallon.

Over the next five years, South Carolina’s diesel and gas tax rates will increase by 12 cents to 28.75 cents per gallon. The first of these increases took effect this month, raising the tax by 2 cents from 16.75 cents to 18.75 cents.

Tennessee’s 18.4-cent diesel tax rate was raised by 4 cents to 22.4 cents. It is set to increase another 6 cents over the next two years to 28.4 cents per gallon.

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Finally, in West Virginia, the state’s variable fuel tax based on wholesale prices was raised from a minimum of 11.7 cents to a minimum of 15.2 cents. The other component of the state’s fuel tax is a flat rate of 20.5 cents that remains unchanged. In total, the fuel tax is now 35.7 cents per gallon.

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