Tax Hike Would Erase Drop in Prices Over Past Month

Tax Hike Would Erase Drop in Prices Over Past Month

 

Tax Hike Would Erase Drop in Prices Over Past MonthThe average price of a gallon of gas in Massachusetts dipped below $3.50 in AAA’s most recent survey, but gas remains 11 cents a gallon more expensive than a year ago. AAA’s weekly survey results placed the average price of a gallon of regular unleaded at $3.48, a drop of 3 cents a gallon over the past month.

Tax-raising legislation that could emerge this week from a House-Senate conference committee will likely call for state taxes on a gallon of gas, currently 23.5 cents per gallon, to rise to 26.5 cents per gallon. Survey takers found gas for as low as $3.32 per gallon and as high as $3.69 per gallon. Negotiators are also expected to recommend automatic increases in the gas tax in the future to keep pace with inflation.

Both branches on Monday scheduled informal sessions for Tuesday, which means that if an agreement is reached on the tax bill, it won’t be considered until later in the week, after Tuesday’s U.S. Senate special election. While legislative activity is usually light on election days, four legislative committees have scheduled public hearings on Tuesday.

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