Sen. Lisa Boscola (D) wants to temporarily suspend Pennsylvania’s gas and diesel taxes, according to a recently posted co-sponsorship memo.
“Pennsylvania drivers are already starting to see prices at the pump climb as global oil markets react to instability in the Middle East,” Boscola said in a press release sent by her office. “At a time when families and businesses are already facing rising costs, we should use every tool available to provide some short-term relief.”
The memo calls for legislation for a 60 day pause on the taxes, which sit at 57¢ per gas gallon, and 74¢ per diesel gallon.
Liquid gas taxes (which include other sources beside gas and diesel) make up over half of Pennsylvania’s Motor License Fund, which pays for road and bridge projects and maintenance. Pausing the gas taxes for two months could cost the state over $140 million in revenue.
Boscola says her bills would create bonds to cover any lost revenue.
“When affordability becomes a challenge for Pennsylvania families and business owners, government has a responsibility to step in and look for ways to help,” Boscola said.
Other lawmakers have called for action on the steep gas prices. Democratic state representatives Joe Ciresi and Jim Haddock called on the attorney general’s office to investigate for price gouging.
Ciresi said the gas tax pause was a noble idea, but,
“I think more of the solution is how do we control these crazy gas prices? How do these gas companies justify a 60% increase in two days of war in Iran when they’ve had all this gas in the tanks before this even began.”
In an email, a spokesperson for the attorney general’s office said their jurisdiction on price gouging is limited to when instances happen during a declared state of emergency.
“I think we’re giving these companies a pass,” Ciresi said on the response. “And I think it’s wrong.”
Pennsylvania’s gas and diesel taxes have stayed mostly static for the past decade, compared to volatile global markets.
Still, the commonwealth has the highest diesel tax in the nation and the second highest gas tax, after California (Other fees and taxes that states charge puts some as having higher overall taxes on their fuels).
Over the years, some lawmakers have called for lowering or abolishing the gas taxes. When asked about the high tax rate, Ciresi said comparing states to states can be misleading.
“It’s not comparing apples to apples. Because then how are other states funding their roads? Are they doing it through state tax that’s much higher than ours? Are they doing it through sales tax that’s higher than ours?” Ciresi said. “I mean, they’re not just doing these roads for free.”
A 2022 report from Pennsylvania’s Independent Fiscal Office estimated that Pennsylvania licensed drivers pay an average of $285 a year on their gas tax. That’s like paying a $23.75 monthly subscription for road maintenance and construction.
“When a bridge needs to be replaced its $3 billion,” Ciresi said. “Who’s going to pay for it?”