Illinois’ High Taxes Add to High Cost of Gasoline

Illinois currently has the second-highest gas tax in the nation behind only California. A report from the Illinois Policy Institute highlights how the state got here. According to AAA, diesel fuel, as well as regular unleaded gasoline, are at their highest price per gallon in the state’s history. Prices in Illinois are the eighth highest in the nation at an average of $4.535 for a gallon of regular, and the state’s gas tax, at 39.2 cents per gallon since more than doubling in 2019, is second highest. Adam Schuster of the policy institute said there are many factors at play when looking at Illinois’s fuel prices. However, he said, one thing stands out about the state.

While many states are also feeling the high fuel costs in their wallet, Illinoisans are paying even more just to cover all the taxes. This is forcing many Illinoisans to shop out-of-state when looking to purchase gas, according to Schuster. While Illinoisans are paying an average of $4.535 for a gallon of regular, motorists in border states such as Wisconsin ($3.971), Iowa ($3.898), Missouri ($3.799) and Indiana ($4.202) pay significantly less. The doubling of the state’s fuel tax was implemented in 2019 by Pritzker as an effort to try and raise money to help fix problems regarding the state’s infrastructure.