The first wave in tax increases on Ohio fuel purchases is set to start on July 1, 2019. Unleaded and premium fuels will see a 10.5 cent increase per gallon while diesel vehicles will see an added 19 cents per gallon on their receipt.
Ohio Department of Transportation Director Jack Marchbanks says that compared to how prices have fluctuated in the past, the higher prices will not look as dramatic as they sound.
“Gas prices over the last several years have gone back and forth about $1.43,” said Marchbanks. “You will see higher prices at the pump but you will also see much more construction out there on our roadways, construction that is needed to improve the safety and mobility for all of our citizens here in the state of Ohio."
The money will start making its way to ODOT and the local agencies around early September. The money raised from the tax is expected to go a long way in funding road repairs across the state.
“There will be about $473 million dollars per year going to local governments,” said Marchbanks. “Cities, counties, and townships; and for ODOT, per year, we’re looking at about $457 million dollars per year so what you’re looking at over two years is $1.6 billion dollars that will be invested in surface transportation projects throughout the state."
Although the increase at the pumps will not affect electric and hybrid vehicles as much they will soon see an increase of their own. Marchbanks says starting January 1, 2020, there will be an increase in registration fees to compensate for the travel where they put on the road.
