National gas prices average $3 or more for 1,000th straight day
Today marks the 1,000th day in a row the national average price for a gallon of gas was $3 or more. And AAA forecasts the national average will remain above $3 per gallon for at least another thousand days barring a major economic recession. “Paying less than $3 per gallon for gasoline may be automotive history for...
Today marks the 1,000th day in a row the national average price for a gallon of gas was $3 or more.
And AAA forecasts the national average will remain above $3 per gallon for at least another thousand days barring a major economic recession.
“Paying less than $3 per gallon for gasoline may be automotive history for most Americans, like using 8-track tapes or going to a drive-in movie,” said Bob Darbelnet, President and CEO of AAA in a press release. “The reality is that expensive gas is here to stay, which is tough on millions of people who need a car to live their lives. While a few lucky drivers may occasionally pay less than $3 per gallon, the national average is likely to remain more costly into the future.”
Gas prices first surged above $3 per gallon for eight days immediately following Hurricane Katrina from Sept. 3 through Sept. 10, 2005, AAA reported. The longest previous streak above $3 per gallon was for 244 days from Feb. 17 to Oct. 17, 2008. The national average fell below $3 per gallon for 796 days from Oct. 18, 2008, to Dec. 22, 2010.
Today, the national average price per gallon is $3.51.
But in Chicago, drivers are paying an average price of $4 per gallon.
Though outside factors influence the raw price of gas, one of the reasons Chicago’s prices are consistently among the most expensive in the nation is the additional gas sales tax burden the city and state impose.
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.
On top of that, the state, county and city impose additional excise taxes. Illinois has the fifth-highest excise tax rates in the nation. Combined, the federal, state, county and Chicago motor fuel and excise taxes total $0.81 per gallon.
Worse yet, 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.
So in Chicago and throughout the rest of the state, as the price of gas goes up in Illinois, so does the amount you pay in taxes.
Last month, one lawmaker introduced legislation to change that reality by killing the state’s sales tax on gas. State Rep. Jack Franks, D-Marengo, introduced House Bill 3666, which would exempt motor fuel from the state’s various sales and use taxes beginning July 1, 2014.