House Republican Press Release

May 23, 2007

Press Office: 860-240-8700

Miller: Hidden Taxes, Fees Also Hurting Residents

Legislator Says Other Items Add to Gas Tax Woes

HARTFORD- Representative Lawrence Miller (R- 122) today criticized the state of gas prices in Connecticut, noting that several fees and hidden taxes built into gas prices also add to the high cost being endured by Connecticut motorists.

Miller joined House Republicans last week as they called for a suspension of the state’s 25 cent per gallon gas tax from Memorial Day to Labor Day.  He observed that Connecticut gas prices are climbing higher and faster than surrounding states.

“Last weekend I was in Vermont, and I saw prices going from $2.999 per gallon to $3.149,” said Miller.  “Vermont isn’t even near a pipeline or terminal like Connecticut is, and their gas is substantially cheaper.  In Connecticut, gas has jumped an average of 88 cents per gallon in just a few months.  With a state surplus nearing $900 million, there really is simply no excuse for failing to enact our proposed gas tax holiday.”

The proposal was embraced by Governor M. Jodi Rell, and she has endorsed including the idea in budget negotiations.

Miller noted that additional fees and taxes contribute to the pain Connecticut residents feel at the pumps.  “Many state residents aren’t even aware of the additional gross receipts tax assessed on the wholesale price of gasoline that is passed along to consumers,” he said.  “Right now, that is hovering around 16 cents per gallon.  Another 25 to 30 cents per gallon is due to the costs of ethanol, which also reduces gas mileage.  Processing that ethanol adds 10 to 13 cents per gallon at the refinery.  And of course, let’s not forget the 18.4 cent per gallon federal gas tax.  It all adds up to really sock it to the consumer.

“There is also the fact that roughly $2 for every 10 gallons of gasoline purchased goes to hedge fund investors, who invest roughly $125 billion into the futures market.  This causes a 20 cent increase in the cost of fuel products.”

Miller renewed his call on the legislative majority Democrats to consider implementing the gas tax holiday, and indicated that he would communicate with the Connecticut Congressional delegation to ask the to provide oversight at the commodity trading level so consumers are not overcharged due to speculation.