(1) Transit ridership declined 2 percent in 2018.
(2) Gas prices are down.
“Since last Wednesday (May 8),” says AAA, “the national average for unleaded regular gasoline has fallen two cents to $2.86. However, with summer on the horizon, pump prices will likely rebound during the run-up to Memorial Day.”
(3) States are increasing gas taxes to pay for roads and bridges.
Ohio was the 30th state to raise or reform its gas tax this decade; a 10.5 cents-a-gallon increase takes effect July 1.
On September 1, Alabama’s gas tax goes up by 6 cents, the first stage of a 10-cent increase.
On October 1, a new tax in Arkansas equal to 1.6 percent of the average wholesale price of fuel will take effect.
States are raising their gas taxes due to multiple reasons, including:
- Federal leadership on transportation has faltered. The federal gas tax (18.4 cents a gallon) is not indexed for inflation; federal transportation funds have lost buying power since the tax rate was set in 1993.
- Traffic congestion frustrates motorists and motivates politicians.
- Infrastructure is falling apart. Seven Republican-run states have approved higher gas taxes since President Trump took office.
(4) More vehicle miles are traveled, according to Federal Highway Administration (FHWA).
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