Illinois and Chicago travelers still paying among highest gas prices in country despite price drop

Since last month, gas prices in Illinois have fallen below the $4 mark, dropping by $0.32. But Illinois’ average price per gallon is still almost $0.25 above the national average of $3.48. Chicago’s average price at the pump is even higher – $4.12. Though this is a significant drop from less than a month ago when Chicago had...

Since last month, gas prices in Illinois have fallen below the $4 mark, dropping by $0.32.

But Illinois’ average price per gallon is still almost $0.25 above the national average of $3.48.

Chicago’s average price at the pump is even higher – $4.12.

Though this is a significant drop from less than a month ago when Chicago had the highest price per gallon in the country – $4.59 – the city still has the highest gas prices among the top 10 metropolitan areas in the country.

One of the reasons Illinois and Chicago’s prices are consistently among the most expensive in the nation is the additional gas sales tax burden the city and state impose.

Traditional gas taxes such as “motor fuel taxes” are a fixed amount per gallon. These taxes generally pay for road maintenance and other transportation expenses — and motorists in all states pay these taxes. Combined, the federal, state, county and Chicago motor fuel taxes total $0.48 per gallon.

But not only does Illinois have the nation’s fifth-highest state excise tax rates — it also is one of only seven states to apply an additional sales tax onto gas purchases.

These taxes don’t show up on your receipt — they’re hidden by being built into the price per gallon advertised along the roadways. Even worse, unlike the motor fuel taxes — which are a fixed amount per gallon — the sales taxes are set as percentage rates.

As the price of gas goes up in Illinois, so does the amount you pay in taxes.

The state’s 6.25 percent sales tax adds $0.21 per gallon to the price of gasoline in Chicago. The county and city sales taxes add an additional $0.11 per gallon to the price. This double taxation adds $0.32 per gallon.

So while outside factors may influence the cost customers see reflected at the pump, Illinoisans will always pay more for gas because of the double tax burden politicians impose upon them