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Consumer Information About Motor Fuels

Taxes.  Ever wonder why gasoline is less expensive in some parts of the Northeast than in others?  Connecticut has the highest combined state and federal tax burden on the sale of motor fuels in the Northeast.  See the chart below;

State State Excise Tax Other State Taxes Federal Tax Total Taxes Per Gallon AAA Average Retail Price/Regular Gasoline - 5/1/08
CT 25.0¢ 22.35¢* 18.4¢** 65.75¢ $3.80
NY 8.05¢ 32.04¢ 18.4¢** 58.49¢ $3.79
RI 27.0¢ 4.0¢ 18.4¢ 49.4¢ $3.61
ME 24.6¢ 1.5¢ 18.4¢ 44.5¢ $3.61
MA 21.0¢ 2.5¢ 18.4¢ 41.9¢ $3.56
NH 18.0¢ 2.6¢ 18.4¢ 39.0¢ $3.53
VT 19.0¢ 1.0¢ 18.4¢ 38.4¢ $3.60
NJ 10.5¢ 4.0¢ 18.4¢ 32.9¢ $3.47

THE HIGHER THE GAS TAXES - THE HIGHER THE GAS PRICES!

NOTES:  

  • *CT adds a 7.53% Gross Receipts Tax to each sale. The 22.35¢ listed under "Other State Taxes" refers to an estimated additional 22.35¢ per gallon that this tax adds to each purchase. The CT GRT is tacked onto the wholesale cost.
  • **CT & NY use ethanol instead of MTBE as a oxygenate. As a result, blenders of gasoline with ethanol may apply for a 5.1¢ per gallon refund off the 18.4¢ per gallon federal excise tax.

Taxes - Connecticut has a "Petroleum Gross Reciepts Tax," referenced above, that is charged in addition to the Connecticut State Excise Tax.  Below reflects the GRT tax rates in effect currently and how those taxes are scheduled to go up automatically.

 

Cleaner Fuels.  In 2003 the Connecticut General Assembly passed a law eliminating MTBE from the supply of gasoline being delivered to the state, effective January 1, 2004.  The additive replacing MTBE as an octane enhancer is ethanol, as mandated by the same law.  Only New York and Connecticut will use ethanol in the entire Northeast, complicating the industry's ability to supply the fuel and reducing our supply options should we have any difficulty with ethanol supply.  Every other state around New York and Connecticut uses Reformulated Gasoline with MTBE.

 Competition.  There are 1,576 motor fuels outlets in the State of Connecticut that annually sell more than 1.6 billion gallons of gasoline to the state's motorists.  These stations are owned and operated primarily by "jobbers," or local owners of the service stations without connection to the refining industry.  These jobbers have invested millions of local dollars in environmental improvements to their properties in replacing underground tanks and providing for leak detection and prevention, Stage II vapor recovery to help keep our air clean and a host of other investments in new pumps and other improvements to the service stations of today.

 
Fuel Saving Tips. 
  • Have your car tuned regularly. An engine tune-up can improve car fuel economy by an average of 1 mile per gallon.
  • Keep your tires properly inflated. Under-inflated tires can decrease fuel economy by up to 1 mile per gallon.
  • Slow down. The faster you drive, the more gasoline your car uses. Driving at 65 miles per hour rather than 55 miles per hour reduces fuel economy by about 2 miles per gallon.
  • Avoid jackrabbit starts. Abrupt starts require about twice as much gasoline as gradual starts.
  • Pace your driving. Unnecessary speedups, slowdowns and stops can decrease fuel economy by up to 2 miles per gallon. Stay alert and drive steadily, not erratically. Keep a reasonable, safe distance from the car ahead of you and anticipate traffic conditions.
  • Use your air conditioner sparingly. The use of air conditioning can reduce fuel economy by as much as 2 miles per gallon under certain speeds and operating conditions.
  • Avoid lengthy engine idling. Turn your engine off when you are delayed for more than a couple of minutes.
  • Plan your trips carefully. Combine short trips into one to do all your errands. Avoid traveling during rush hours if possible, to reduce fuel-consumption patterns such as starting and stopping and numerous idling periods. Consider joining a car pool.
© 2004 Independent Connecticut Petroleum Association