Gasoline use tax continues to decline in Indiana

Indianapolis, Indiana – The use tax on fuel has been steadily declining for Indiana motorists. That does not, however, imply that they will find solace at the gas pump.

The gasoline use tax computation for February was just released by the Indiana Department of Revenue. According to the calculations, the rate will drop from 19.9 cents in December to 17.2 cents as of February 1. In contrast, the use tax on gasoline in February 2022 was 17.3 cents.

The average retail price of gasoline during the previous month is multiplied by the state’s 0.07 cent retail tax in order for the department to determine the gasoline usage tax. According to the state, the typical retail price was $2.4508.

Even if the gasoline use tax has gone down recently, it has been rising continuously ever since it hit its lowest position in history in June 2020.

When purchasing gasoline, consumers must also pay additional state and federal taxes. As of July 2022, consumers will pay a federal tax of around 18 cents per gallon in addition to a gas excise tax of 33 cents per gallon that funds infrastructure projects.

The gas excise tax in Indiana is among the highest in the nation. IGEN data shows that only 13 other states have gas excise taxes higher than Indiana’s. Ohio and Illinois, which are nearby, also have higher petrol excise taxes.

In February, consumers would pay about $3.13 at the pump if the national average retail price of gasoline stays at $2.4508. According to AAA, Indiana’s average gas price as of January 26 is $3.364.

“The recent rising temperatures led to rising pump prices,” said Andrew Gross, AAA spokesperson, “And with the cost of oil hitting $80 a barrel, there is a lot of upward pressure on gas prices at the moment.”

According to Gas Buddy, there are growing worries that if there isn’t any more oil, the supply will become more scarce in the next weeks. Prices are anticipated to keep rising in the future.