Gas prices dip, demand down compared to last year
Courtesy | State House News Service
Gas prices in Massachusetts are down two cents as slumping consumer demand and lower crude oil prices give motorists a break from high prices at the pump this summer.
The average price of a gallon of self-serve regular gasoline is $2.68, AAA Northeast said Monday, three pennies lower than the $2.71 per gallon national average and 16 cents cheaper than the average price here a year ago.
The U.S. Energy Information Administration reported that demand for gasoline dropped last week to 9.55 million barrels per day, about 100,000 barrels per day fewer than the previous week and 300,000 barrels per day less than last year at the same time.
"Prices are cheaper as demand saw a small dip on the week, even though overall demand remains robust for the summer," Mary Maguire, director of public and legislative affairs, said. "Most states have seen cheaper pump prices of a few pennies and motorists can expect this trend to continue through the first part of August."
In Massachusetts, AAA found gas prices ranging from $2.39 per gallon to a high of $2.99 per gallon.
Massachusetts drivers could soon see changes in the price at the pump, regardless of oil market dynamics.
House lawmakers are gearing up for a debate on a broad transportation financing package this fall. House Speaker Robert DeLeo has said he is open to tax hikes or just about any other prescription to address the state's critical needs and wants the House to vote on a plan this fall.
One possible remedy that some state representatives have already approached DeLeo to say they would support is another attempt to tie the state's gas tax to inflation.
"Some members have already approached me on it, they feel that they could support," the speaker said at a Greater Boston Chamber of Commerce breakfast in March. "It's never an easy issue to take up, but again, I think we're at a stage where if we're going to get serious about addressing this issue then everything and anything has to be on the table."
In 2013, the Legislature voted to raise the gas tax by three cents -- which legislative leaders at the time called "sensible and reasonable" -- and set it up to continue to increase apace with inflation. Led by then-Rep. Geoff Diehl, activists organized a campaign to repeal the automatic gas tax indexing and secured a spot on the 2014 ballot for a repeal effort. The automatic indexing was repealed with 53 percent of voters in favor.
Motorists pay 24 cents per gallon in state gas tax, fractions of a penny below the national average, according to the U.S. Energy Information Administration. For each gallon of gas, drivers also pay a fee of roughly 2.5 cents to support the Underground Storage Tank Petroleum Product Cleanup Fund. When all state and federal assessments are calculated in, about 45 cents of every gallon of gas pumped in Massachusetts goes to taxes or fees.
In the budget for the fiscal year that started July 1, Massachusetts is expecting to bring in $847.7 million in revenue from taxes on motor fuel, including gasoline and diesel, which is subject to the same state taxes and fees.
Earlier this year, A Better City released a report detailing an $8.4 billion shortfall in revenues needed to ensure state roads, bridges, and MBTA infrastructure are in a state of good repair over the next 10 years. Business groups have decried the Boston area's public transportation woes as a hindrance to business growth.
"There are different options we're constantly looking at, we're not taking anything off the table at this point. Clearly, transportation, it's in crisis," Rep. Mark Cusack, House chairman of the Revenue Committee, told the News Service last month. He said the eventual transportation revenue package will be "a multi-pronged solution here, revenue solution, to really improve transportation throughout the commonwealth."
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