Ford Turner, Central Square
(The Center Square) – A 39% augment in gas prices and a 51% augment in diesel prices over the past year have left Pennsylvania consumers “stressed and struggling,” in the words of one state lawmaker – but the Legislature’s proposals to reduce or eliminate cost-increasing taxes have gained little traction.
AAA showed average price of unleaded gasoline in Pennsylvania on Wednesday was $4.64 a gallon, down from $3.33 a year ago. The augment in diesel prices was even more dramatic, going from $3.98 a gallon to $5.99.
In Harrisburg, the level of voter protest over gas prices depends on which lawmaker speaks.
“This is at the top of the list. People are very stressed right now,” Democrat Rep. Mandy Steele Allegheny County said where gas prices fall among the component complaints. Even though they know the state government has little control over gas prices, she said, “They want me to know they are stressed and struggling.”
Republican Representative Keith Greiner Meanwhile, Lancaster County said almost no one has heard from anyone on the subject.
For businesses, president and CEO of the Pennsylvania Manufacturing Association David Taylor he said, “Anything that increases transportation costs is a hindrance.” At the same time, Taylor believes that high prices will be short-lived once the United States takes control of the situation around Iran.
Former CEO of the Pennsylvania Chamber of Business and Industry, Gene Barrhe wasn’t so sure. Barr, who is also the previous executive director of the American Petroleum Institute’s Pennsylvania office, said the situation around Iran is too fluid to predict.
At the same time, there is no denying that Pennsylvania businesses are feeling significant impacts.
“In some industries, fifty percent of the cost is fuel,” Barr said.
Several state lawmakers have introduced proposals to lower gas prices by lowering the state gas tax.
One of them, a Republican Senator Jarrett Coleman Lehigh County, proposed before the start of the Iran War get rid of state taxes on gas and diesel fuel, which are 57.6 and 74.1 cents per gallon, respectively.
Coleman did not propose a way to compensate the state for lost revenue. Instead, – he stated in the note that the state – with more than $40 billion flowing into the general fund and various special funds that receive little attention – could “displace gas tax revenues and prioritize the spending of taxpayers’ hard-earned money.” His bill containing this proposal is pending in the Senate Transportation Committee.
Recently, Coleman proposed getting rid of the tax break available to data center companies and using the up-to-date revenue to cover part of the gas tax. A separate democratic state Senator Lisa Boscola applied from Northampton County bills for the momentary suspension of taxes both on gas and diesel.
Both Taylor and Barr have spoken out against suspending the gas tax because the tax revenue goes toward road and bridge repairs.
“They mean well, but they think wrongly,” Taylor said. “The gas tax is a major source of revenue for infrastructure that benefits everyone.”
The conduit through which gas tax revenues are spent on infrastructure projects is the state’s Motor License Fund. Barr called any attempt to raise gas tax money for this purpose a “short-term and short-sighted” idea.
He said: “Every time you put that nozzle in the tank you are contributing money to the Motor License Fund.”
