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Several U.S. States Increase Gas Price Up To 25 Cents Per Gallon As Gas Taxes Are Added

American Automobile Association [Photo: Shutterstock]
American Automobile Association [Photo: Shutterstock]

Several U.S. States have increased prices of gas by up to 25 cents per gallon as taxes are added. Drivers from Connecticut, Florida, Illinois, Michigan, New York, North Carolina, and Utah have experienced this gas price hike starting on January 1.

Increase in Gas Price [Photo: WMBF News]

Increase in Gas Price [Photo: WMBF News]

Millions of Americans will be paying for more expensive gas as seven U.S. states decided to add fees on gas prices. Effective January 1, 2023, drivers from Connecticut, Florida, Illinois, Michigan, New York, North Carolina, and Utah have experienced an increase of up to 25 cents per gallon in their gas prices. Consumers do not directly pay for gas taxes, but it is gas suppliers who add the taxes to the gas prices. According to the American Automobile Association (AAA), the average gas price to date is $3.216 per gallon. Fortunately, these new taxes have not affected the average gas price on the national level yet, as reported by Johnson.

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States in the U.S. That Experienced Gas Price Hike

According to Johnson, in Connecticut, the delay on the excise tax on gas has ended this month. Fortunately, the state will slowly incorporate the tax back, adding only 5 cents per month for five months until it reaches 25 cents again. In Florida, the gas tax was also delayed during the fall. However, the excise tax on gas and diesel now increased the price by 1.2 cents per gallon. This inflation in price is an automatic amendment written into the constitution of the state. In Illinois, the gas tax was also delayed for six months until 2023 began. Effective January 1, 2023, the gas price increased to 3.1 cents per gallon.

In Michigan, the gas tax also increased the price by 1.4 cents per gallon. This inflation in price is a yearly amendment where either 5% or the yearly inflation rate is added, whichever is lower. In North Carolina, a yearly amendment was also implemented to its gas tax. The gas price increased up to 2 cents per gallon. In New York, the delay on gas taxes ended as 2023 began. The delay started in June 2022 when residents saved an average of 16 cents per gallon. Lastly, in Utah, gas and diesel taxes increased up to 4.5%. This change was based on the state’s average price of gas for three years.

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