The tax Connecticut charges on diesel fuel will drop to 50.3 cents from 54.5 cents per gallon on July 1, according to the state Department of Revenue Services.
The tax Connecticut charges on diesel fuel will drop to 50.3 cents from 54.5 cents per gallon on July 1, according to the state Department of Revenue Services.
“This is great news for truckers who use millions of gallons of diesel every year,” said Mike Riley, president of Motor Transport Association of Connecticut.
Despite the 4.2 cent decrease, however, Connecticut's diesel tax remains the second highest in the nation, according to the American Petroleum Institute. Only Pennsylvania's diesel fuel tax is higher at 65.3 cents per gallon. The next closest to Connecticut is New York at 45.45 cents per gallon.
The tax is recalculated every year based on the average wholesale price of diesel and the petroleum gross earnings rate. The new diesel tax rate will remain in effect for 12 months and then be recalculated again.
“Labor and fuel are truckers' biggest expenses. The drop in the rate of this tax is a big deal,” Riley said. “The reduction of costs from dropping this tax will go right to a very thin bottom line in thousands of Connecticut businesses.”
