Gas tax increase begins Labor Day weekend

BIRMINGHAM, Ala. (WBRC) - We’re just days away from the statewide gas tax starting, but despite that six-cent increase starting Sunday, you may be paying less than $2 a gallon later this year.

The average price of gasoline is about $2.21 in Alabama. That’s better than a week ago and compared to last year, it’s down some 30 cents a gallon.

In Birmingham, drivers were filling up today. It’s a holiday weekend and certainly the prices are down.

Gas Buddy says the ongoing tension over trade between the United States and China has forced the oil companies to drop their prices because of the uncertainty.

So yes - gas prices will move up about six cents when the new tax takes effect. But what can we expect them to do after the tax goes up?

“Gas prices will continue falling barring the tax increase that is going to take effect. We should see gas prices following more notably in mid-September and that could last until to Thanksgiving or even Christmas and do expect more prices across the state to fall under $2 a gallon,” Patrick DeHaan with Gas Buddy said.

DeHaan also said he doesn’t expect Hurricane Dorian to have any effect on gas prices because there are no oil refineries in Florida.

You can find more on Gas Buddy by clicking here.

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