Diesel fuel tax to rise sharply in CT; Experts say costs will hit consumers

Already reeling from skyrocketing national inflation, Connecticut consumers face a one-two punch beginning July 1 that threatens to make groceries and other basic goods even more expensive. The Department of Revenue Services is expected within the next two weeks to announce a major increase in the state’s diesel tax, effective July 1 and driven by wholesale fuel prices that have more than doubled over the past year. The diesel fuel that powers most trucks is taxed by the state following an annual formula that includes a fixed base and an adjustment that looks at average wholesale diesel prices over the prior year, as well as the tax rate applied to wholesale gasoline transactions. The diesel tax, which currently stands at 40.1 cents per gallon, has been as high over the past five years as 46.5 cents — where it stood in 2019. Industry experts say the latest conditions could produce a tax hike of more than 10 cents per gallon, if wholesale prices remain on the rise.


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