ALL PUMPED UP

BY GREG JOHNSON
Frontiersman
Published on Monday, August 31, 2009 10:34 PM AKDT

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.

ROBERT DeBERRY/Frontiersman The price of gas has jumped from yesterday’s price of $3.19 as a suspension of the state’s gasoline tax ends.

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.

Comments

21 comment(s)

    MO Inkslinger wrote on Sep 6, 2009 6:06 AM:

    " Wow! I was complaining about fuel prices when I filled up a $2.25 per gallon! Guess, I have nothing to complain about! "

    Oil wrote on Sep 4, 2009 11:55 PM:

    " Does it cause you to ask this question? Why does refined oil, gasoline, cost so much in the state it is most plentiful? Why is Alaskan refined crude oil, one form at least, gasoline, cheaper in foreign countries and Hawaii than it is in Alaska? The laws should be re-written to force a great or greater percentage to be refined in Alaska so we could purchase this gas at a lower cost. What's a $1,200 PFD check if we are paying $5,000 more annually for gas and oil? Somebody must know. "

    DL wrote on Sep 3, 2009 1:20 PM:

    " The frontiersman should try their gas price whining in the bush. That would be a good laugh. Taxes waaa! "

    Get a clue wrote on Sep 3, 2009 11:49 AM:

    " To Uh.
    Simple. We had the second highest prices in the nation behind Hawaii and at one point we were the highest and this was all at the same time the tax was being suspended. Duh! "

    Uh... wrote on Sep 2, 2009 10:45 PM:

    " The lead says alaskans are paying the highest prices, and then the first quote says the hi prices have nothing to do with the tax. Nice journalism guys. "

    Payin thru the Nose wrote on Sep 2, 2009 11:02 AM:

    " Well that put prices above 4 bucks a gallon in spots here in Homer. Winter coming on, no breaks in sight. "

    Power Wagon wrote on Sep 2, 2009 10:54 AM:

    " Jim from Boston;
    Give it up. You're obviously not smart enough to understand the PFD system since you still insist on looking at it as a "dole out" instead of the allocation of tax money that it is. I have seen you continuously make that reference in this site time after time while people correct you on your big mistake. So either you can't grasp the reality or don't wish to. Either way, you just look like an idiot now. "

    Jim from Boston wrote on Sep 2, 2009 9:47 AM:

    " I seem to be misunderstood. My message is this, you can't expect to have Alaska dole out money to you from the fund and not have to tax you to pay for a few necessities not that Uncle Sweetie Stevens isn't running the show in the Appropriations.

    The oil company analogy is symbolic. The Alaskan belief in the free lunch isn't. "

    sharpie wrote on Sep 2, 2009 9:03 AM:

    " Gosh lee, you mean that living in a rugged state that is seperated from the continental 48 states, blanketed in permafrost and sparsely populated might be more difficult that, say, living in Los Angeles? WOW! Who woulda thought?! It's a marvel that we can even HAVE paved roads here and OF COURSE they cost a lot to build and break down quickly (are you new here?) The cost of transporting goods up here is OBVIOUSLY more expensive that down south. But hey, if this is all a surprise to you...WHY ARE YOU HERE?! MOVE! "

    twofixit wrote on Sep 2, 2009 8:17 AM:

    " Part of the high prices is the consumers fault, we pay the high prices without question. Lets try only purchasing fuel from the lowest stations, it only takes a little planning, then the high guys will have to lower prices in order to sell fuel. "

    lee wrote on Sep 1, 2009 8:24 PM:

    " lets look at the facts- we pay the highest gas prices, we pay ridiculous heating fuel and NG prices, we pay exstorbinate building material prices, we pay the highest for pathetic Internet services that lets face it folks is like the stone age for speed, we have a over bloated government that provides over expensive services that suck and we have some of the worst roads in the nation..Yep its a expensive state that honestly and true fully when you sit down and truly analize it it really offers nothing.. "

    oil companies wrote on Sep 1, 2009 4:43 PM:

    " they gouge us either way....when we took the tax off, gas did not go down...when they put the tax back, it raised that minute. "

    jp wrote on Sep 1, 2009 4:17 PM:

    " to jim from boston;

    it's not the oil companies, it's the fact that Obama jump started Wall Street back to business as usual.
    the oil companies don't set the price, stock prices do.
    my advice; buy oil stocks now. "

    jp to Oops wrote on Sep 1, 2009 4:14 PM:

    " simple solution for you:


    Move! "

    Palmer Farm wrote on Sep 1, 2009 3:31 PM:

    " Jim from Boston: Do you write your blogs after quickly skimming a portion of the headline, or do you actually READ the article? (We've already established that you never bother to research or otherwise look into the subjects that you blather about.)

    Well anyway, liberals should be happy. After all, there's nothing they love more than taxes, taxes, taxes! Because all those taxes "help" us so much! "

    offsoapstone wrote on Sep 1, 2009 12:33 PM:

    " This is to Jim from Boston, you yet again show you didn't read this article or can't understand what you read. This is not about the oil companies this is about a state tax that is not needed for our state to survive. Maybe we should turn off the tap to the lower 48 then write us back about high gas prices.
    Linda Menard statement in this article should be a wake up call to all voters she is a tax and spend repub. "

    allisaw wrote on Sep 1, 2009 10:37 AM:

    " things just don't add up here. i hope people start skwaking like mad when the oil companies start showing their record profits again. $70 a barrel to $3.30 a gallon. murk needs to start fighting for us and get something done about these high prices. remember a few years ago when $2.00 a gallon was an outrage. we should be hopping mad. "

    Allen wrote on Sep 1, 2009 9:19 AM:

    " We were paying the nation's highest price for gas BEFORE the tax was reinstituted. Now we're really paying big time. "

    Jim from Boston wrote on Sep 1, 2009 9:18 AM:

    " The oil companies giveth and the oil companies taketh away. Stop whining. "

    WHAT HAPPENED wrote on Sep 1, 2009 6:46 AM:

    " to the Legislative investigation of price fixing and gouging that is going on in this state?

    Put their feet to the fire for answers, my friends.
    There is no vaild excuse or reason for such difference in fuel prices. Look at other states at gasprices.com for a comparison.
    We heed help here also. "

    Oops wrote on Sep 1, 2009 4:28 AM:

    " When is this RICH state, ya know the THANKS BUT NO THANKS state gonna fight for it's people we are paying dearly to live here. Why isn't someone doing something about this cost, year after year, villagers suffer and now city dwellers the entire populace needs some help. We aren't whiners we are sick of this over inflated price gouging, we'll have what 1 month then the holidays will come UP goes the fuel prices you watch. "

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