Printer Friendly

GASOLINE TAX FACT SHEET

 GLENDALE, Calif., Sept. 24 /PRNewswire/ -- Effective Oct. 1, 1993, the federal tax on gasoline and diesel fuel will be increased 4.3 cents per gallon. The following information is being released by Western States Petroleum Association and is intended to provide an overview of the current federal gasoline tax rate and the impacts which the increase will generate. Also included is a brief description of the federal wintertime oxygenated fuel program which will take effect on Oct. 1, 1993.
 Fuel Tax Facts
 The 4.3 cents per gallon tax increase on gasoline and diesel fuel will take effect Oct. 1, 1993. The tax increase will also be placed on methanol, ethanol, CNG, propane and other fuels subject to the leaking underground storage tank excise tax. In addition, the existing 2.5 cents per gallon tax for federal deficit reduction, which was set to expire Sept. 30, 1995, has been extended to Sept. 30, 1999.
 The federal excise tax on gasoline currently is 14.1 cents per gallon. The Oct. 1 increase will bring the total federal excise tax on gasoline to 18.4 cents per gallon. Federal taxes on diesel fuel, which are at 20.1 cents per gallon, will be increased to 24.4 cents per gallon.
 All revenue generated from the fuel taxes will be placed in the general Treasury fund for deficit reduction. The new fuel taxes are expected to raise about $22 billion over a five-year period.
 The American Automobile Association estimates the average U.S. motorist will pay about $31 a year more as a result of the tax increase. In the western states, the average family will pay about $47 a year vs. about $44 in the Northeast and about $46 in the South.
 Gasoline Prices and Taxes
 According to the America Petroleum Institute, when adjusted for inflation, gasoline prices today are actually about 50 percent below what they were some 10 years ago. Self-serve, unleaded gasoline prices in 1981 were about $1.38 a gallon. In June of this year, they were roughly $1.20 a gallon.
 During the same period, taxes on gasoline have more than doubled. Federal and state gasoline taxes in California in 1981 were about 17 cents a gallon. Currently, these combined taxes are about 39 cents: 14.1 cents for federal excise taxes, 17 cents for state excise taxes, and about 8 cents for state sales tax. Gasoline taxes currently account for about 30 percent of the pump price. When the new taxes take effect on Oct. 1, they will total 43.4 cents per gallon.
 Gasoline Tax Chart (Cents Per Gallon)
 The following chart lists the state excise and sales tax rate for the western states effective Oct. 1, 1993. Keep in mind that the federal tax rate on gasoline is currently 14.1 cents per gallon plus the increase of 4.3 cents per gallon on Oct. 1.
 State State Excise & Sales Tax Federal Total
 California 25 18 43
 Oregon 24 18 42
 Arizona 18 18 36
 Nevada 23 18 41
 Washington 23 18 41
 Hawaii 19.5 18 38
 Wintertime Oxygenated Gasoline Program - 1993/94
 Effective Oct. 1, 1993, several cities throughout the nation are required under the Federal Clean Air Act to implement winter oxygenated gasoline programs. The oxygenated fuels program is required in areas that exceed the federal carbon monoxide air quality standards. California cities participating in the program include: Los Angeles, Anaheim, Riverside, San Diego, Sacramento, Stockton, Modesto, Fresno, and San Francisco. Other western cities include Las Vegas; Reno, Nev.; Spokane, Wash.; Seattle; Phoenix; Portland, Ore.; and parts of Southern Oregon.
 Increasing the oxygen content of gasoline reduces the carbon monoxide emissions through better combustion of fuel, which is generally less efficient in cold temperatures. The oxygen boosts offsets the effects of fuel-rich operating conditions that occur during vehicle start-up in cold weather. According to the Environmental Protection Agency (EPA), oxygenated gasoline results in an overall reduction of carbon monoxide pollution of 15 percent to 20 percent.
 -0- 9/24/93
 /CONTACT: Jeff Wilson, WSPA, 818-543-5344/


CO: Western States Petroleum Association ST: California IN: OIL SU:

JB-LS -- LA010 -- 5481 09/24/93 14:42 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 24, 1993
Words:693
Previous Article:BANKATLANTIC RECEIVES AFFORDABLE HOUSING PROGRAM SUBSIDY TO FINANCE 70 HABITAT FOR HUMANITY HOMES IN SOUTH FLORIDA
Next Article:APPLEBEE'S CEO CHOSEN 1993 OPERATOR OF THE YEAR IN MULTI-UNIT FOOD SERVICE OPERATORS POLL
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters