Less Gasoline Consumption Equals Cheaper Gas Right? Think Again

Just when you thought it was safe to fill up your gas tank, the United States and the rest of the world are changing fuel consumption habits by driving less and thus consuming less fuel, the price of gasoline has seen a dramatic drop. Great news right? That all depends on who you ask. Just as the motorists are cheering for the cheaper gas, officials are now screaming for higher taxes to be added to that gas (source: news.yahoo.com).

While state taxes on gasoline and diesel fuels vary from state to state, a 15-member panel created by Congress known as the National Commission of Surface Transportation Infrastructure Financing is calling for a raise of federal fuel taxes by 50%. The raise would increase the federal gasoline tax which is already at 18.4 cents and the federal diesel tax which is at 24.4 cents per gallon of fuel consumed. What this will translate to at the pump is roughly 10 cents more per gallon for gasoline consumers and 12-15 cents more per gallon for those using diesel fuel (source: news.yahoo.com). In the state of our economy why the urge for higher taxes now?

Because of the changing pattern of drivers, the commission is stating that the taxes currently being brought in are not enough to sustain the construction and repair of the major highways, roads and bridges across America. While those at the commission are not thrilled about a tax hike they feel it is a necessary one until the government can figure out a better way to collect the needed taxes from the people. One plan has already been drafted by the commission that would tax motorists according to how much they use the roadways (source: news.yahoo.com). Whatever the solution is, something must be done to insure that the roadways are taken care of as the costs are staggering.

A study by the Transportation Research Board of the National Academies estimates that the annual revenues needed for the improvement and maintenance of the roadways will increase to $134 billion by 2017 up from $105 billion in 2007 (source: news.yahoo.com). It does raise the question however about what they were doing with all the tax dollars that were flowing in while driving in America was at its peak. So keep cheering at the gas pumps America, we've waited long enough for cheaper fuel, just don't get used to it. If the supply of oil doesn't get us, the officials and politicians of this country screaming for higher taxes will.