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 Illinois’ gas taxes vaulted to third-highest in the nation July
1, when the state motor fuel tax doubled to 38 cents, and could go higher yet.
The new tax started just in time for Independence Day weekend travel, which AAA
projects will be the busiest ever. The organization anticipates nearly 2.4
million Illinoisans will travel more than 50 miles from home during the weekend.
When it comes time for those travelers to fill up, they might be inclined to
save a little by buying gas in another state.
Illinois’ new motor fuel tax is tied to inflation, meaning it will automatically
rise in future years without requiring lawmaker approval. The tax is projected
to reach 43.5 cents by 2025, a 130% increase from June 2019.
On average, an Illinois driver travels 12,921 miles a year, and the average
vehicle consumes one gallon of gasoline every 24.7 miles. Based on those
numbers, Illinoisans will pay $100 more a year under the 38-cents-per-gallon
state gas tax in its first year. By 2025, that burden will rise to nearly $130
more per year.
Statewide, Illinoisans are paying an average price of $2.91 per
gallon, up to 47cents more than the average price in neighboring Missouri.
Nationwide, travelers are getting a break compared to last Independence Day,
with average gas prices down 23 cents. Unfortunately, Illinoisans aren’t
experiencing any relief: Gas prices are up 7 cents compared to last year.
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Illinois drivers venturing into other states – or who have family
coming into the state – would be wise to fill up elsewhere.
Those traveling in the Chicago area could save 29 cents per gallon
by purchasing gas in nearby Gary, Ind. Those near the
Illinois-Missouri border could save 47 cents per gallon by choosing
to fill up in Cape Girardeau rather than nearby Carbondale.
Had the 19-cent gas tax hike not gone into effect, gas would be
cheaper in some areas of the Illinois-Missouri border. Drivers in
the Belleville area would have actually paid lower prices in
Belleville than in St. Louis, but thanks to the new Illinois tax are
facing gas prices 9 cents more expensive per gallon.
Beyond the state-level increase, the new law as of July 1 also
allows Chicago to increase its local gas tax by 3 cents; Lake County
and Will County to impose a gas tax of up to 8 cents per gallon; and
DuPage, Kane and McHenry counties to double their 4-cent-per-gallon
gas taxes to 8 cents. These additional hikes in heavily populated
areas may end up making Illinois’ average gas tax burden the highest
or second-highest in the nation.
While AAA doesn’t anticipate the state’s gas tax hike to be enough
to deter travelers during the holiday weekend, it will almost
certainly affect where drivers decide to purchase their gasoline.
Illinois retailers lose in that calculation.
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