State’s Diesel Prices Still Above Average
Fuel and the costs associated with it are a constant source of discussion within the trucking industry. While federal factors contribute to these costs, state factors play a very large role as well.
Connecticut’s tax on diesel fuel is fixed each year over the summer. This is done using a statutory formula which is based on wholesale gas prices. The state’s tax on diesel fuel fell by 17 percent from 50.3 cents per gallon to 41.7 cents per gallon according to the Department of Revenue. The levy is down 25 percent from the rate of 54.5 cents per gallon from only two years earlier.
Joseph R. Sculley, president of the Motor Transport Association of Connecticut said: “Fuel is the second-biggest cost to a trucking company besides labor.” Over 800 trucking and trucking-related companies are represented by the Motor Transport Association. Fuel has always been an expense that those within the trucking industry or associated with it have worked to monitor closely. Another factor which has been monitored is transportation costs.
Sculley noted that these costs were lower, and that this assisted a vast array of retail goods which are transported to their location by truck. These lower costs are a change, as Connecticut had the highest diesel tax rate of any US state until just a few years ago. The new formula was passed into law in 2008, and this has helped to keep costs manageable and somewhat predictable. However, the state’s diesel tax rate is still considered to be high when compared to that of other states.