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Government & Politics

Business Leaders React to Increase in State Gas Tax

photo of trucks on highway
The state gas tax increase will have the most effect on diesel fuel, Ohio business leaders said.

Beginning July 1st, Ohio’s gas tax will increase by ten and half cents per gallon for regular fuel. But the tax on diesel will go up by 19 cents, because big trucks do most of the damage on Ohio’s roads. The diesel fuel increase is what some business leaders said will end up costing all Ohioans more in the long run.

Tony Long, the director of tax and economic policy for the Ohio Chamber of Commerce, said 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," Long said.

Long said this new tax increase in the transportation budget, which has been signed by Gov. Mike DeWine, will make Ohio’s diesel tax the sixth highest in the country.