Illinois Gas Tax Set to Rise July 1 Despite Surging Pump Prices

CHICAGO — As drivers across Illinois grapple with a statewide average gas price of $4.97 per gallon — well above the national average of around $4.50 — the state’s motor fuel tax is scheduled to increase again on July 1, prompting renewed calls for relief from Republican lawmakers and policy advocates.

The automatic increase will raise the state motor fuel tax to 49.6 cents per gallon (an approximate 1.3-cent hike from the current 48.3 cents). The inflation-adjusted hikes were established under Governor J.B. Pritzker’s first budget in 2019 as part of the “Rebuild Illinois” infrastructure program. Illinois drivers already pay some of the highest gas taxes in the country.

Deputy Republican Leader Ryan Spain recently introduced a bill to pause the gas sales tax for six months. However, Governor Pritzker has not signaled support for suspending the tax.

Dylan Sharkey with the Illinois Policy Institute joined a recent broadcast to discuss the looming increase and the strain on working families.

“You know, Illinoisans are already paying the third-highest gas taxes in the country,” Sharkey said. “We have yearly automatic increases thanks to Governor J.B. Pritzker’s first budget that he passed in 2019.”

Sharkey pointed to unspent infrastructure funds as a key frustration.

“The frustrating part is the state has billions of dollars to repair the roads that it’s just not spending,” he said. “So you should spend more of that money before taking more from drivers.”

When asked how motor fuel tax revenue has been distributed since the 2019 “Rebuild Illinois” program took effect, Sharkey said road conditions have not improved.

“There have been surveys done every year since 2019, and the roads and their conditions are not improving,” he said. “So people aren’t even getting better roads in return.”

Sharkey noted that Illinois drivers are now paying roughly $150 more per year in state gas taxes since the 2019 increase, with some counties adding even more through local taxes.

He also highlighted ripple effects beyond the pump.

“When you go to a store, when you buy something, most everything that you buy got here because of fuel,” Sharkey said. “And so costs on those goods are affected as well.”

Asked whether the state is doing enough to offset costs for working families, Sharkey referenced Pritzker’s past actions.

“I remember Governor Pritzker’s last reelection bid. He suspended the gas tax increase then,” Sharkey said. “There’s no reason he couldn’t do it now. We’ve seen other states give drivers gas tax holidays — Indiana, a few other states, Georgia. He could get it done if he wants to. If you don’t give people a break now, I don’t know when you would.”

Sharkey expressed support for the Republican-led legislation, calling affordability the biggest issue in Springfield.

“I think this would be an easy win for lawmakers,” he said.

Regarding a potential federal gas tax suspension (the federal tax stands at 18.4 cents per gallon for gasoline and 24.4 cents for diesel), Sharkey said it would meaningfully ease prices but argued the state need not wait on Congress.

“That’s 20 cents a gallon. That would have a huge impact on drivers in the state,” he said. “But Governor Pritzker, he doesn’t need to wait for Congress to act on it. If he wanted to, he could get it done right now. We don’t have gridlock. You do in Congress because we have a supermajority in our state. And so when things — when they want things to happen — they get done quickly.”

With only a few weeks left in the legislative session, Sharkey urged action.

“Lawmakers oftentimes pass 3,000-page bills just in one day without even reading it, or without giving people a chance to weigh in on it,” he said. “But I would sure hope that Governor Pritzker or lawmakers step up and give people a break here.”