Indiana drivers paying more at the pump - Cincinnati News, FOX19-WXIX TV

Indiana drivers paying more at the pump

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ST. LEON, INDIANA (FOX19 NOW) -

As we enter the Fourth of July weekend, drivers in Indiana are preparing to empty their wallets a little more to fill up their gas tanks. 

On Saturday July 1, the state’s gas tax will increase by 10 cents for regular fuel and 20 cents for diesel fuel.

Representative Edmond Soliday tells FOX19 NOW that the increased gas tax is need to improve infrastructure that continues to deteriorate.

Lavonne Wyatt, who lives on St. Peters Road, says it’s crumbling apart. Wyatt also agrees that the interstates need to be improved by she feels the amount of the gas tax increase is too steep. 

“It’s going to affect my wallet a lot because I have to drive to my doctor’s appointments and things so it’s going to put a pinch on my wallet,” said Wyatt.

Currently the gasoline tax in Indiana in 18 cents, so the tax increase would bring it to 28 cents, which is the current rate in Ohio.

However, Indiana also has an additional .129 User Tax similar to a sales tax.

The owner of Steve’s Sunoco in St. Leon also owns a gas station in Ohio. 

He says that each gallon will end up costing him 13 cents more than what he currently pays in Ohio. 

Since his gas station border the Ohio, Indiana line he says he can’t transfer the cost to the gas prices because drivers will chose to fill up on Ohio. In the end he says he will ending up losing revenue.

Indiana has not had a gasoline tax increase since 2003 for regular fuel. The price for diesel fuel hasn’t changed since 1988. 

Rep. Soliday says diesel trucks cause 27 times more damage than cars on the road so it’s time they pay more.

Soliday says, the plan is expected to bring in $1.2 billion in extra revenue each year and $30 billion in the next 20 years.

In addition to the gas tax increase, Indiana drivers will also have to pay a $15 dollar registration fee for all motor vehicles. Those with electronic vehicles will have to pay a $150 registration fee.

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