Chicago has highest gas prices in the country

In the fight for the highest gas prices in America, Chicago now reigns supreme. Customers purchasing fuel in the city are now paying an average of $4.59 per gallon. That’s $0.13 more per gallon than when we last reported on Illinois’ high gas prices at the end of May. Many have chalked up Chicago’s consistently high gas prices to...

In the fight for the highest gas prices in America, Chicago now reigns supreme.

Customers purchasing fuel in the city are now paying an average of $4.59 per gallon. That’s $0.13 more per gallon than when we last reported on Illinois’ high gas prices at the end of May.

Many have chalked up Chicago’s consistently high gas prices to a number of different factors, such as refinery issues and oil prices.

Some people – including European regulators – are even concerned that major gasoline corporations are manipulating prices.

That’s just one possible explanation for why gas prices are up across the country.

But why do Chicago prices consistently lead the pack?

One of the major reasons is the additional gas sales tax burden from Chicago and Illinois.

Traditional gas taxes such as “motor fuel taxes” are a fixed amount per gallon. These taxes generally pay for road maintenance and other transportation expenses — and motorists in all states pay these taxes. Combined, the federal, state, county and Chicago motor fuel taxes total $0.48 per gallon.

But not only does Illinois have the nation’s fifth-highest state excise tax rates — it also is one of only seven states to apply an additional sales tax onto gas purchases.

These taxes don’t show up on your receipt — they’re hidden by being built into the price per gallon advertised along the roadways. Even worse, unlike the motor fuel taxes — which are a fixed amount per gallon — the sales taxes are set as percentage rates.

As the price of gas goes up in Illinois, so does the amount you pay in taxes.

The state’s 6.25 percent sales tax adds $0.22 per gallon to the price of gasoline in Chicago. The county and city sales taxes add an additional $0.11 per gallon to the price. This double taxation adds $0.33 per gallon.

So while outside factors may influence the cost customers see reflected at the pump, Illinoisans will always pay more for gas because of the double tax burden politicians impose upon them.