Businesses Could Pass Diesel Fuel Tax Increase Onto Consumers | WOSU Radio

Businesses Could Pass Diesel Fuel Tax Increase Onto Consumers

Apr 4, 2019

Beginning July 1, Ohio’s gas tax will increase by 10.5 cents per gallon for regular fuel. The tax on diesel will go up by 19 cents, because big trucks do most of the damage on Ohio’s roads.

It's that diesel fuel increase that some business leaders say will end up costing all Ohioans more in the long run. 

Tony Long, director of tax and economic policy for the Ohio Chamber of Commerce, says the increased taxes will likely be added to fuel surcharges which could ultimately get passed on to the cost of goods and services.

“Most businesses cannot, at the end of the day, eat additional costs without doing something to counteract that, whether it’s adding it to the cost of the product, doing something else or finding ways to account for that new cost,” he says.

Long says this new tax increase in the transportation budget, which is expected to be signed by Gov. Mike DeWine soon, will make Ohio’s diesel tax the sixth highest in the country.

Funds from the gas tax will be distributed between state and local infrastructure projects.