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Connecticut Diesel Tax Dips While New Truck Highway Tax Is Set To Begin

Image by Schwoaze from Pixabay

Regulators have reduced Connecticut’s diesel fuel tax to its lowest level in a decade. Starting this month, the new tax rate is about 40 cents per gallon of diesel. That’s 10% less than last year.

The state Department of Revenue Services are required by law to calculate a new rate every year. It’s based on the average wholesale price since the previous March. That means the cost of diesel was low for importers during the pandemic.

The trucking industry is expected to save $11 million this year from the reduced tax.

They also avoided paying more from a failed climate initiative in the state that would require fuel wholesalers to purchase pollution allowances. However, come January, large commercial trucks will also have to pay 17 cents for every mile they drive on all Connecticut roads because of a new highway tax approved this year.

AAA reports that the cost of regular gas for Connecticut motorists is on par with the national average at $3.13 a gallon. The auto club said gas prices have increased this year because rates for crude oil have reached a seven-year high.

A native Long Islander, J.D. is WSHU's managing editor. He also hosts the climate podcast Higher Ground. J.D. reports for public radio stations across the Northeast, is a journalism educator and proud SPJ member.