Governor Parnell Proposes Motor Fuel Tax Suspension
Gas Tax Suspension Not Enough Say Several Democrats; Governor urged to join anti-gouging efforts
January 14, 2011
(SitNews) – Alaska Governor Sean Parnell today submitted legislation to suspend the motor fuel tax for 24 months.
“Alaskans are feeling the pinch of rising fuel costs when purchasing fuel for their vehicles, boats, snow machines and planes,” Governor Parnell said. “While suspending the motor fuel tax would provide a temporary reduction in the cost of motor fuel, action is necessary for long-term solutions to high energy costs.”
Suspending the $.08 per gallon of state fuel tax will save Alaskans money at the pump.
Several Democratic legislators again applauded Gov. Sean Parnell’s attempts to hold down fuel costs for Alaskans, but urged the governor to go further, and join their efforts to end fuel price gouging in Alaska. The governor wants to extend the eight cent fuel tax suspension, but the Democrats’ proposal could reduce gasoline costs by as much as 51 cents per gallon.
“Alaskans are paying too much for gas,” said Rep. Pete Petersen (D-Anchorage) who is a sponsor of HB 25 which would prohibit refineries from charging excessive or exorbitant prices. “The state needs anti-gouging laws so we can get to the bottom of why residents of a major oil producing state are paying more than almost anyone else for a tank of gas.”
Despite being the nation’s largest oil producer per capita, Alaska gasoline and diesel prices have consistently been the highest in the nation, even when the state tax was suspended for a year. According to the latest report from AAA, including state taxes, Alaskan gas prices are 51 cents higher than the national average. The average Alaskan gasoline price is $3.498 per gallon excluding state taxes. Hawaii, which produces no oil, has the second highest prices at $3.247 per gallon, excluding state taxes. In Washington the price is $2.859.
Sen. Bill Wielechowski (D-Anchorage) who sponsors SB 28 said, "A recent nonpartisan report showed Alaskans have been paying about 54 cents per gallon more than the national average, and refiners in Alaska are making twice as much profit as elsewhere. While rolling back the 8 cent gas tax may help, if we want real change for Alaskans, we must pass a strong anti-price gouging bill."
Separate investigations by the Attorney General, House Judiciary Committee, and the Legislative Research Service have all shown that Alaska’s high prices are caused by abnormally large mark-ups charged by Alaska’s refineries. The Attorney General concluded that there is no real competition between the two refiners, but that Alaska does not have any laws against price gouging.
“Repealing the eight-cent gas tax is only a small part of what the state can do to help,” said Rep. Chris Tuck (D-Anchorage) a sponsor of the House bill. “The underlying issue is bringing those prices down to be more in line with what families should be paying. The problem isn't high taxes, the real problem is high prices charged by the refineries."
Also sponsoring the House legislation are Rep. Scott Kawasaki (D-Fairbanks). The Senate bill is also sponsored by Sens. Johnny Ellis and Hollis French (both D-Anchorage). The House bills were released last week and will be assigned to committees on Tuesday, the first day of the legislative session.
On the Web:
Download a copy of the Governor's proposed bill
Sources of News:
Office of the Governor
Office of Representative Chris Tuck
Office of Representative Pete Petersen
Senator Bill Wielechowski
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