The State of Connecticut (CT) is raising its diesel tax rate by almost 7 cents to $0.462 for every gallon of diesel, highest diesel tax in the northeastern United States. The latest revenue generating measure is meant to aid the budget shortfall despite the fact that Connecticut already has amongst the highest taxes in the nation.
This price hike will surely affect the shipping, transportation and trucking companies that do business in the State of Connecticut. The tax hike will make it more expensive to ship cars to Connecticut. Truckstops and gas stations that sell diesel stand to loose business as more of their customers will choose to fill up in the neighboring states. While the state is likely gain additional revenue because motor carriers and car haulers that operate in the state file quarterly fuel tax reports under IFTA, the overall effect on the local economy may be detrimental.
Source: Norwich Bulletin