Chicago: highest gas prices of any major U.S. metro area

Chicago has the highest gas prices of any major metropolitan area in the United States. A gallon of gas is now $4.06 on average in Chicago; the national average is $3.56. 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...

Chicago has the highest gas prices of any major metropolitan area in the United States.

A gallon of gas is now $4.06 on average in Chicago; the national average is $3.56.

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.

Despite these high prices, AAA reports that averages for Illinois have dropped slightly in August, though outside factors are likely to make gas prices uncertain later this fall.

“While gas prices appear to be falling slightly, the situation in the Middle East as well as the end of a very calm hurricane season make September prices very unpredictable,” Beth Mosher, director of public affairs for AAA Chicago, said in a statement.

But no matter what happens to the raw price of gas here and across the country, Chicago’s prices will continue to remain high because of double taxation from city, county and state government.

Last week, one lawmaker introduced legislation to change that reality by killing the state’s sales tax on gas. State Rep. Jack Franks, D-Marengo, House Bill 3666, which would exempt motor fuel from the state’s various sales and use taxes beginning July 1, 2014.