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No huge gasoline price hike yet

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Illinois

* According to the Gas Buddy website at about 1:15 this afternoon, the average Illinois gasoline price has only risen about 5 cents a gallon today, even though a 19 cents per gallon increase of the Motor Fuel Tax kicked in at midnight. Gas prices fluctuate all the time. Gas Buddy reports the price of a gallon of regular gas in Illinois is about 8 cents lower today than it was on June 2nd.

Meanwhile, here’s yet another uninformed person on the street story about today’s Motor Fuel Tax hike…

“I truly hope it does what it’s supposed to do,” [Steve Young, a Springfield retiree who was filling his tank at the Shell station on West Washington Street] said. “We’ve seen that happen. Infrastructure hasn’t been maintained.

“I just hope they don’t take other funding away from (the infrastructure plan), sort of like what the lottery did back in the 1970s. (All the money was) going to education. Well, then they just cut the whole line item for education.” […]

Dan Bergner of Springfield filled up both of his cars at two packed Circle Ks on the north end Saturday in anticipation of the tax hike.

Bergner previously lived in Georgia and he saw the state and its infrastructure benefit from things like the lottery.

“When we lived in Georgia, the lottery went for the roads and education and a lot of the schools (there) are like college campuses,” Bergner said. “They have some of the best teachers in the U.S. and the roads have been phenomenal. In Illinois, they can’t seem to keep the money where it’s supposed to go. It gets used elsewhere. […]

“Truckers coming through Illinois aren’t fueling up (here). They’re fueling up before they get to Illinois. They pay fees to use the roads, but they’re not getting the revenue from the fuel tax.”

1) The lottery education shell game was real. As money came in from lottery receipts, state general revenue funding for K-12 was pared back. But we’ve had the opposite problem with transportation money. Legislators and governors kept dipping into the Road Fund to pay for state operating costs and program expenses. Illinois voters approved a constitutional amendment in 2016 that prevents using state transportation money for anything other than transportation purposes.

2) All the profits from the state of Georgia’s lottery go to education, according to the Georgia Lottery itself. No lottery revenue is spent on transportation projects in that state.

3) There’s this thing called the IFTA that distributes truckers’ motor fuel taxes…

The International Fuel Tax Agreement — also known as IFTA — is a fuel tax collection and sharing agreement for the redistribution of fuel taxes paid by interstate commercial carriers. There are 58 member jurisdictions of IFTA, including 48 American states and 10 Canadian provinces.

By requiring commercial carriers to pay fuel taxes proportionally, according to the miles driven in each state or province, the agreement ensures that each jurisdiction has its fair share of revenue to put towards roads and transportation.

I get the anger. Who would want to give this state government another penny of their hard-earned dollars? So their anger is a legit news story. But while regular folks are generally unclear on concepts like these, news media outlets shouldn’t be.

posted by Rich Miller
Monday, Jul 1, 19 @ 1:26 pm

Comments

Quite a few of the local stations are now at $2.85

Comment by Workerbee Monday, Jul 1, 19 @ 1:34 pm
Anyone ask Bill Fleischli to explain why some stations suddenly jacked prices on Friday and over the weekend? Surely they’re not gouging motorists for a couple extra bucks. I mean, that industry has never done that before.

Comment by Michelle Flaherty Monday, Jul 1, 19 @ 1:38 pm
If gas prices ever get near $3.70 in Illinois (again) the tax will become a real issue.

Comment by Steve Monday, Jul 1, 19 @ 1:43 pm
Like Rich said, it fluctuates. The last couple of out of state trips, Illinois gas was cheaper.

Will the extra cost hurt some people? I’m sure it will, my son being one of them with a 35 gallon tank in his truck.

But it’s not the highest gas prices in the nation.

https://gasprices.aaa.com/state-gas-price-averages/

Comment by RNUG Monday, Jul 1, 19 @ 1:45 pm
Also ,if gas breaks $2.00 for any sustained time: politicians might be tempted to raise the tax again.

Comment by Steve Monday, Jul 1, 19 @ 1:47 pm
Some people are irrational when it comes to gas prices. It will be interesting to see if there’s any long term reaction or if people just forget about it. Doubling and indexing the gas tax was a bit much from my perspective, but when you have a tax and spender like JB, what can you do?

Comment by SSL Monday, Jul 1, 19 @ 1:49 pm
My hope is that reduced vehicle maintenance will largely offset the higher gas tax. Be nice if there was a way to measure that statewide.

Comment by Last Bull Moose Monday, Jul 1, 19 @ 1:50 pm
–Some people are irrational when it comes to gas prices.—

Not someone in a rural area who drives an hour or more to work or has a long suburb to suburb drive and has to budget gasoline along with food and rent.

Comment by Token Conservative Monday, Jul 1, 19 @ 1:52 pm
I have a large tank in my truck. But I figured it wasn’t worth saving around $4 by making a special trip to fill up over the weekend. So I was happy to see that many stations hadn’t raised the price Monday morning. The gas stations in Springfield that have raised the price are the ones that tend to raise the price early and I never patronize those stations because of that.

Comment by A Jack Monday, Jul 1, 19 @ 1:54 pm
Gas went up over 30 cents in Beardstown.
$2.89 at Casey’s.

Comment by btowntruth from forgottonia Monday, Jul 1, 19 @ 1:54 pm
$2.53 yesterday.
$2.89 today.

Nineteen cent tax increase…..looks like the gas station owners decided they wanted a little taste too.

Comment by btowntruth from forgottonia Monday, Jul 1, 19 @ 1:58 pm
Illinois legislature passed the original gas tax in the 1920’s for $.02 gallon. That would be the equivalent of $0.29 gallon now. Roads have changed a lot since 1920.

Comment by Buster Scruggs Monday, Jul 1, 19 @ 2:01 pm
Token, I didn’t mean to minimize the impact this increase will have on many hardworking people. I was referring to my own irrational feelings around gas prices. I think it was hereditary. The old man was the same way.

Comment by SSL Monday, Jul 1, 19 @ 2:02 pm
It should be about 70 to 80 cents above the rbob futures downstate. A lot of places jacked them up a month ago.

Comment by Not a Billionaire Monday, Jul 1, 19 @ 2:02 pm
=when you have a tax and spender like JB, what can you do?=

What prey tell do you expect government to do other than tax and spend? It’s the essential role that they fulfill. What mechanism do you envision where roads suddenly appear for free and maintain themselves?

Comment by Pundent Monday, Jul 1, 19 @ 2:08 pm
I filled up last night. As an avid GasBuddy user, I checked my list about 7-8 stations favorited from the western and northern suburbs prior to fill-up. Just checked it again and everything went up by exactly 19 cents.

Comment by Father Ted Monday, Jul 1, 19 @ 2:11 pm
People sometimes aren’t good with maths. If you drive 15,000 miles a year, and average 20mpg, your yearly increase is $142.50. That’s per year. About $.40 a day.

Comment by Bruce( no not him) Monday, Jul 1, 19 @ 2:12 pm
=Quite a few of the local stations are now at $2.85=

=$2.53 yesterday.
$2.89 today.=

=If gas prices ever get near $3.70 in Illinois (again) =

Where are you folks? Stations near me were at $3.79 a few weeks ago, so it was nice to see them drop to $3.59 and then last week to $3.49. (Haven’t checked today.)

Comment by JoanP Monday, Jul 1, 19 @ 2:16 pm
==But it’s not the highest gas prices in the nation.==

On that AAA site, we’re the only bright red state in the midwest.

Comment by City Zen Monday, Jul 1, 19 @ 2:18 pm
==we’re the only bright red state in the midwest==

That’s nice. Leave it to you.

—————-

To the post:

Gas prices were in the $2.80s where I am a couple of weeks ago. They are now back in the $2.80s (I will note they went up about 30 cents overnight so it’s nice to see the gas stations had other reasons to raise the price as well). Gas prices fluctuate so much and so wildly that I’m not sure I’ll notice much of a difference. They frequently drop and then go up 30 cents a pop.

Besides, I don’t mind paying the extra 19 cents. The infrastructure in this state is horrendous and I’ll gladly pay the 19 cents to help start fixing it.

Comment by Demoralized Monday, Jul 1, 19 @ 2:45 pm
Although that article has it’s problems, it does get to the crux of the problem which is the public’s not unjustified skepticism that the money will actually be used for it’s intended purpose. I would also guess that the percentage of the public that is aware of of the constitutional “lock box” is probably pretty low.

Comment by Milootis Monday, Jul 1, 19 @ 3:49 pm
Not a fan of “tax and spend” on frivolous stuff, but safe roads and bridges are not frivolous. I drive close to 20k miles annually and have calculated my cost as $172 more annually driving my 22 mpg vehicle. Less than 50 cents per day. I can manage that fine. People need to chill.

Comment by The Bashful Raconteur Monday, Jul 1, 19 @ 4:44 pm
My apologies for repeating myself, but here’s a point I first submitted in October, 2015, since which time nothing has changed.

Point of information:

One of the more enduring urban legends in Illinois is that the lottery was created to fund education.

Actually, when the legislation establishing the lottery was approved by the Illinois General Assembly in the fall, 1973 veto session, the proposal was part of a 17-bill, negotiated package that included creation of a regional transit authority for the Chicago area.

Because the deal included providing state assistance to mass transit in the Chicago region– most notably, the CTA– its architects saw the lottery as a way to replenish state funds they envisioned being used to subsidize the RTA. The bill’s sponsor said the lottery would generate an estimated some $60 million annually for the state’s general revenue fund.

Indeed, during House debate on the bill, some legislators who previously supported a lottery for education declared their opposition to the measure because lottery money would NOT go to schools.

Source: “Lottery, RTA bills OKd, go to Walker,” Chicago Sunday Sun-Times, December 2, 1973.

Personal note: I authored the lottery story as a member of the Sun-Times Statehouse bureau.

Charlie Wheeler

Comment by Charlie Wheeler Monday, Jul 1, 19 @ 4:56 pm
The price jumped $.20 overnight in Du Quoin. I don’t mind paying the extra tax if it’s well and truly used for infrastructure. After the “Lottery for Education” fiasco, though, this may be the 2nd time Illinois legislators will have fooled me. That will be my fault, and I won’t forget.

Comment by DQCardsFan Monday, Jul 1, 19 @ 4:58 pm
Prices up in South Holland, IL (South Suburb of Cook County).

Comment by revvedup Monday, Jul 1, 19 @ 5:59 pm
If finding the best price is what you’re after, Download the gasbuddy app. I have no affinity for a station or brand, so it works for me in finding the lowest price.

Comment by Harvest76 Monday, Jul 1, 19 @ 6:38 pm
The additional gas taxes amount to about an additional $100-$150 per year. Not a big deal. If you want to pay less taxes, drive less, in Illinois that is

Comment by Earl Hickey Monday, Jul 1, 19 @ 7:45 pm
In Chester, the GasBuddy average is $2.89 for Chester and $2.47 for just across the Chester Bridge at McBride.

Comment by Southern Illinois Infrastructure Tuesday, Jul 2, 19 @ 1:46 am
The last time national gas prices were high, the state stepped in when IL gas stations were routinely gouging consumers at the pumps by artificially raising prices. Stations then stopped the practice. I’m hoping this tax increase will again cause consumers to complain and bring state scrutiny again to the pumps. Consumers complain about the tax increase but gas stations again have been routinely raising and dropping gas prices by 20 - 40 cents a gallon over the past couple of years despite what the national oil prices are. So, in effect, we’ve already been paying this tax by being ripped off by gas station operators. Perhaps that’s why the gas prices so far have only increased slightly. Perhaps most gas station operators are being cautious because they know they’ve been already charging too much.

Comment by Anon Tuesday, Jul 2, 19 @ 6:50 am
gas prices here in central illinois went up 20 cents from Sunday’s prices

Comment by truthteller Tuesday, Jul 2, 19 @ 6:53 am
The lowest price for gas in Lake County is $2.69 which is exactly the same price 20 miles north in Wisconsin. I’ve seen it as high as $3.49 in the area but why anybody wouldn’t be using GasBuddy at this point to find the best prices is beyond me.

Comment by Pundent Tuesday, Jul 2, 19 @ 8:33 am