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Home / Business / Illinois' new 38-cent gas tax will likely send drivers to Indiana, experts say

Illinois' new 38-cent gas tax will likely send drivers to Indiana, experts say



– According to industry analysts, more drivers are likely to look for better prices in Indiana, but it's unclear whether a higher levy on cigarettes will have the same effect. As of July 1, the Illinois gas tax will double from 19 cents to 38 cents per gallon, compared to 29 cents per gallon in Indiana.

"The Illinois gas station convenience store industry is on the list of endangered species," said William Fleischli, executive vice president of the Illinois Petroleum Marketers Association / Illinois Association of Convenience Stores, opposite (Northwest Indiana ) Times] GasBuddy.com mineral oil analyst Patrick DeHaan agreed.

"Motorists shopping in Indiana are likely to make savings, and this is likely to lead to a decline in gallon sales in Illinois," said DeHaan.

In addition, cigarettes will cost 1

USD more per pack of Illinois next month in addition to the $ 1.98 per pack tax already in force. Elena Ivanova of the Chicago Health Department told the Associated Press that the city's highest ever cigarette tax would rise to $ 8.16 per pack.

In comparison, Indiana taxed every pack of cigarettes at 95 cents.

Gus Olympidis, CEO of Family Express Convenience Stores, said that while Indiana's cigarette taxes are much lower, the cost advantage could be lost during the next legislature when Indian legislators were once again thinking about raising cigarette taxes.

A proposal to increase the tax by $ 2 per pack failed in Indiana legislation this year despite support for the polls and support from the Indiana Chamber of Commerce.

Nevertheless, Fleischli predicts that the tax increases for cigarettes and gas in total will be devastating for Illinois companies.

"Borders are broadening and our customers will cross them to buy fuel, cigarettes and other supplies, which will cost the state tax and corporate profits," he said. "Our engine fuel levels will decline by 2% to 3% a year for about three years and then recover, and interior sales will fall by 10% to 12% and may never recover."


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