• ICPA provides consumers with important

    information about the motor fuels they buy and how

    the motor fuels industry works.

Renewable Fuel - Ethanol

 

10% of the gasoline you buy contains the domestically produced renewable fuel ethanol. The 2005 and 2007 federal energy bills mandate U.S. gasoline blenders sell a certain amount of ethanol in the gasoline supply and that amount increases over time. The effect: we're running low on corn, which is bad news for ranchers, and anyone else who uses corn, beef, or anything that competes with corn for land -- that is, bad news for everyone except for a few folks getting rich off ethanol. Because ethanol is produced domestically, from domestically grown crops, it can be said that using ethanol reduces U.S. dependence on foreign oil and increases the nation's energy independence.  This means that Connecticut uses 160 million gallons of ethanol and avoids using 160 million gallons of refined gasoline. It can also be said that ethanol is a poor energy bargain for consumers as in exchange for the $6 billion federal ethanol tax credit consumers receive a fuel that contains less energy per gallon than it takes in energy to produce that same gallon. Ethanol also contains less energy per gallon than the same amount of gasoline, hence drivers will notice slightly less "gas" mileage as ethanol use increases.

 

Renewable fuels are fuels that we can make again and again without depleting valuable resources in the earth. Extracting crude oil or natural gas from the ground depletes resources from the earth's crust. The crops we use for ethanol, on the other hand, can be grown, harvested, and grown again every year.  Not surprisingly, diverting corn from food to fuel use has raised food prices. At a little over $2 per bushel when the 2005 law was signed, the price of corn has surged above $5, primarily because a quarter of the crop is now used to produce energy. A host of corn-related foods, such as corn-fed meat and dairy, have seen sharp price increases. Wheat and soybeans are also up, partly as a result of fewer acres being planted in favor of corn. There's talk of inflation rising to levels not seen in decades as renewable mandates have conspired with other factors to drive up food prices.

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 gasoline in the Northeast. Gasoline taxes and prices are below, Diesel Fuel taxes and prices are further down on this page.

Gasoline Taxes and Prices

Connecticut has the highest combined state taxes on gasoline and as a result has the highest gasoline prices. However, if you subtract the state and federal taxes from average state prices across this region - then Connecticut's gasoline prices are no higher than anywhere else in our region. Connecticut's ranking for having the highest prices are due only to Connecticut's highest taxes.

State State Excise Tax Other State Taxes Federal Tax Total Taxes Per Gallon AAA Average Retail Price/Regular Gasoline - 1/6/2012 Retail Price Minus Government Taxes
NY $0.0805 $0.3630 $0.1840 $0.6275 $3.61 $2.98
CT $0.2500 $0.2093 $0.1840 $0.6433 $3.60 $2.96
RI $0.2900 $0.0400 $0.1840 $0.5140 $3.43 $2.92
ME $0.2950 $0.0150 $0.1840 $0.4940 $3.44 $2.95
MA $0.2100 $0.0250 $0.1840 $0.4190 $3.37 $2.95
NH $0.1700 $0.0260 $0.1840 $0.3800 $3.32 $2.94
VT $0.2350 $0.0100 $0.1840 $0.4290 $3.44 $3.01
NJ $0.1050 $0.0400 $0.1840 $0.3290 $3.25 $2.92

 

NOTES:  

  • *CT adds a 7.53% Gross Receipts Tax to each wholesale gasoline sale. The 23.04c listed under "Other State Taxes" refers to an estimated additional 23.04c per gallon that this tax adds to each purchase. The CT GRT is added the wholesale cost of gasoline as the CT GRT is a tax on 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 4.5c per gallon refund off the 18.4c per gallon federal excise tax.

Gasoline 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.

Gasoline Prices at the Pump

Diesel Fuel Taxes and Prices

Connecticut has the highest state taxes on diesel fuel in this region and even with that has the second highest diesel prices. However, if you subtract the state and federal taxes from average state prices across this region - then Connecticut's diesel prices are no higher than anywhere else. Connecticut's ranking for having the second highest diesel fuel prices are due only to Connecticut's highest diesel fuel taxes.

State State Excise Tax Other State Taxes Federal Tax Total Taxes Per Gallon AAA Average Retail Price/Diesel Fuel - 1/6/2012 Retail Price Minus Government Taxes
NY $0.0850 $0.3230 $0.2440 $0.6520 $4.16 $3.51
CT** $0.4620   $0.2440 $0.7060 $4.12 $3.41
RI $0.3000 $0.0100 $0.2440 $0.5540 $3.94 $3.39
VT $0.2500 $0.0100 $0.2440 $0.5040 $4.03 $3.53
MA $0.2100 $0.0250 $0.2440 $0.4790 $3.91 $3.43
ME $0.3070 $0.0700 $0.2440 $0.6210 $4.03 $3.41
NH $0.1800 $0.0160 $0.2440 $0.4400 $3.87 $3.43
NJ $0.1350 $0.0400 $0.2440 $0.4190 $3.87 $3.45

 

NOTES:  

  • **Connecticut abolished the Petroleum Gross Receipts Tax [GRT] on diesel fuel effective July 1, 2007. However, at the same time Connecticut enacted a provision in the tax law that allows the CT Dept. of Revenue Services to "look back" at the end of each fiscal year and see what the GRT would have raised, had it been in effect, and add that amount to the CT Diesel Excise Tax. 

  • CT DRS announced on June 10, 2011 that the CT diesel excise tax goes up from 39.6c per gallon to 46.2c per gallon effective July 1, 2011. The CT DRS guidance is HERE

  • CT DRS announced on May 25, 2010 that the CT diesel excise tax goes down from 45.1c per gallon to 39.6c per gallon effective July 1, 2010. The CT DRS guidance is HERE

  • CT DRS announced on June 15, 2009 that the CT diesel excise tax goes up from 43.4c to 45.1c per gallon effective July 1, 2009. The CT DRS guidance is HERE

 

National Overview.  Click here and be redirected to the U.S. Department of Energy's Weekly Updates on the Gasoline and Diesel markets across the country.

 

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.