Gas tax increase hardly impacting drivers

Gas Tax impact

BIRMINGHAM, Ala. (WBRC) - Many Alabama drivers were shocked when they filled up at the pumps and did not see the jump in gas prices they expected following the 6 cents a gallon tax increase that went into effect September 1st.

The average price of gas has actually dropped to about $2.20 a gallon, which is pleasing drivers.

So why was was their no increase in prices?

“Gas stations essentially absorbed the relatively small tax increase," said Patrick DeHaan, petroleum analyst at Gas Buddy. "Wholesale gasoline prices have been declining and stations are little bit slower to pass those drops along.”

Dehaan said there is chance gas prices could go up slightly in the near future because of the tax increase, but the uneasiness over the China, US tariff war is keeping oil companies from raising prices.

“There is never a good time for a gas tax increase but all of the times of the year, motorist won’t see or feel a tax increase going into the fall.” DeHaan said.

"In fact Alabama is one of the states that will probably see plenty of prices under $2 a gallon ahead of the new year,” DeHaan said.

This is just what motorists want to hear, as they continue to keep their eye on the pumps.

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