In an effort to increase the funding for the transportation budget that is needed to help with a backlog of bridges, roadways, and mass transit systems that are in awaiting repairs and updates, the state decides to raise its tax on fuel.
The start of 2014, saw Pennsylvania increase the transportation fuel tax; the first of three scheduled increases enacted by a new law. The fuel tax increase, however, may not lead to residents seeing higher prices at the pump.
PA Department of Revenue increased the state tax on gasoline by 9.5 cents and diesel fuel by 13 cents. The higher tax is only on these two transportation fuels and will be collected from the distributors. Many wholesale distributors, and gas station owners that buy directly from re-sellers, state that these higher costs will be passed on to the consumers.
US Energy Information Administration, however, is predicting that gasoline prices in 2014 will drop to an average $3.43 per gallon, from $3.50 in 2013. The price of diesel will decrease to $3.73 from an average of $3.92, the year before.
Therefore, many Pennsylvanians may not see the price increase at the pump, or the increase will only be slight when averaged across the entire year.