Overview
- The Office of the Comptroller set the new motor fuel tax at 46.6 cents per gallon by the June 1 deadline, a net rise of 0.6 of a penny from this year that takes effect on July 1.
- The rate is calculated from two parts: an inflation-linked Consumer Price Index adjustment that only rises and a wholesale-price component based on a 12-month average of pre-tax wholesale gasoline.
- Annual inflation of 2.8% added nine-tenths of a penny to this year’s rate while a three-tenths of a penny drop in the wholesale component partially offset that increase.
- The change adds about six cents in taxes for every 10 gallons of regular gas and arrives as retail pump prices in Maryland hover above $4 per gallon in recent weekly averages.
- Republican lawmakers criticized the automatic inflation link and say they will push to change or repeal it if the legislature returns for a special session, while officials warn that sustained global price spikes would raise next year’s tax.