ALL PUMPED UP

WASILLA — Alaska motorists are paying the nation’s highest prices for gasoline today thanks to the reinstatement of the state’s 8-cent gasoline tax.

“We actually have the lowest tax rate in the nation,” said Johanna Bales, deputy director for the Alaska Department of Revenue’s Tax Division. “Some states have 30 and 40 cents a gallon tax. Why we have the highest prices has nothing to do with the tax.”

The 8-cent jump at the pump comes after a year suspension of the state gasoline tax. It was part of Sarah Palin’s energy rebate plan approved by the Legislature in Senate Bill 4002, which put a hold on the gas tax from Sept. 1, 2009 to Aug. 31, 2009. The bill also bolstered the 2008 Permanent Fund Dividend payments by $1,200 to mitigate escalating energy costs.

Drivers are paying an average of $3.339 per gallon today, about a penny more than the $3.323 average in Hawaii, according to the AAA “Daily Fuel Gauge Report.” Gas prices are up from the $2.393 average Valley residents were paying for a gallon of regular unleaded six months ago, but less than the $4.351 average a year ago.

Over the past 12 months, the state has not collected about $40 million in fuel taxes, money that’s sorely needed, said state Sen. Linda Menard.

“I’m extremely supportive of putting the 8 cents back on,” said Menard, vice-chair of the Senate Transportation Committee. “That 8 cents goes directly to our roads and transportation. People have to remember that transportation includes the 140-some airports we have, the roads, the bridges. We’re the lowest (gas tax in the nation), and we need that for our roads.”

Whether the state needs the money or not, Wasilla resident Jon Dewel was filling up Monday to avoid paying higher prices today.

“I don’t like it at all. Who would like it?” he said while pumping at the Tesoro station at the Parks and Palmer-Wasilla highways. “Who likes any prices going up? I’m getting as much as I can now. I’m surprised more people aren’t here. ... They give it to you      with one hand and take it away with the other.”

State Rep. Carl Gato said he’s also concerned about paying more, but said the state can’t — and shouldn’t — be involved in setting prices in a free market society.

“Well, what will happen is people will see an instantaneous 8 cents increase,” he said. “There’s no way out of it. ... It’s a free market, though. The state does not regulate the price of gas. You can set the price of gas anywhere you want as a free market.

Gato also believes that as long as oil prices remain high, residents shouldn’t pay a tax on gasoline.

“As long as the price of oil is high and we’re making money on oil, let’s not charge an additional tax,” he said.

That would be fine with Tim Zinza, a Fairbanks resident filling up in Wasilla Monday for the drive home.

“What did I just pay? $3.21 a gallon?” he said. “That’s a dollar too much. Honestly, though, to me I don’t care so much about the gas as the heating oil. It’s the cost of heating oil that’s killing us in Fairbanks. That’s my biggest beef.”

Contact Greg Johnson at greg.johnson@frontiersman.com or 352-2269.