- Advertisement -

The Pennsylvania State Senate on Wednesday voted to repeal the automatic increase in wholesale taxes on gasoline and diesel that goes into effect this year to keep motorists from paying more per gallon.

- Advertisement -

The vote, 29-19, sent the bill to the state House of Representatives, where a partisan struggle for control paralyzed the House a week after a new legislative session.

It’s unclear exactly how much of the wholesale tax increase will go to gas station motorists unless the Legislature passes a bill to repeal it.

- Advertisement -

The Republican Party of Pennsylvania blew up the government. WOLF’S PROPOSED TAX INCREASE REQUIRES A BETTER CORONAVIRUS RESPONSE

Automatic tax increase was passed nearly a decade ago as lawmakers sought to put more money into improving highways and bridges.

The action in Pennsylvania comes as five states that have adopted sweeping gas tax holidays due to high pump prices — California, Connecticut, Georgia, Maryland and New York — are moving to resume collecting fuel taxes.

Under a 2013 Pennsylvania law, the wholesale tax on gasoline and diesel can float based on the average wholesale price, and last year’s high gas prices raise the wholesale tax in Pennsylvania to the highest level allowed by law.


The law dictates that the average wholesale price cannot be less than $2.99 ​​per gallon. In 2022, the price exceeded this threshold, which led to an increase in the tax.

The average wholesale price was $3.17 in 2022, which increased the wholesale gasoline tax from 57.6 cents per gallon in 2022 to 61.1 cents in 2023.

For diesel, the wholesale tax will rise from 74.1 cents to 78.5 cents in 2023.

The bill would permanently cap the average wholesale price at $2.99 ​​and eliminate any tax increase for 2023 and beyond.

Senate Budget Analysts Project that dropping the average wholesale price to $2.99 ​​would cost the state $228 million in annual revenue from transportation projects, or nearly 6% of the nearly $4 billion it could otherwise raise.