I-Team Investigation: State tax on diesel expected to rise in July
NEWINGTON, CT (WFSB) - Higher prices will be coming soon to a gas station near you.
The state is expected to raise the diesel tax in July.
This has the potential to affect every single resident in Connecticut.
It’s important to note that the new diesel tax hasn’t been established yet, but all indications are that it will be higher than the 40 cents a gallon it’s currently at.
At a gas station in Newington, the price of diesel is $6.29.
You may be at home saying, “I don’t have a boat, I don’t have a car that takes diesel, this won’t affect me.”
Eyewitness News is learning it will.
The truck that delivers your unleaded runs on diesel, and the truck that delivers groceries runs on diesel.
The expectation is that those costs will be passed on to us.
Tina Williams comes from Hartford to shop at Stew Leonard’s in Newington for the variety and the deals.
“You get a variety, a host of fresh items,” Williams said.
But recently, she’s noticed prices everywhere are increasing.
“Meat, dairy products,” she said.
That’s because the price of diesel is up.
The wholesale price of diesel was around $2.25 last year and it’s $4.80 this year.
It’s impacting your local grocery store.
“Anything that has to travel far to get to us unfortunately you’ll see that,” said Jenn Polaski, Stew Leonard’s Store Manager.
Polaski gave an example using filet mignon.
“At this time last year, whole tenderloins were $13.99 a pound. This year they’re on sale for $17.99 a pound. That’s the already trimmed the fats already taken off,” Polaski said.
Because the independently owned Stew Leonard’s works with many local farmers, produce doesn’t see too much of a spike.
They also do its best to absorb costs so they don’t get passed on to the shoppers.
“We have the ability to shop around and not use just one vendor so if someone has trouble meeting our supply needs, we can go somewhere else,” Polaski said.
“I see less costs here,” said Williams.
Chris Herb, the President of CT Energy Marketers, expects the diesel tax increase will hit your wallet at the pump too.
“All products that you’re going to buy are going to feel the pain of this increase,” said Herb.
The exact tax increase won’t be known until mid-June and won’t take effect until July 1, but Herb says we should be ready to absorb every cent.
“Wholesalers and retailers aren’t going to be able to eat the tax and it’s going to have to be pushed on because of so many increases we’ve experienced in the last few months,” Herb said.
Eyewitness News asked Governor Ned Lamont if he plans to suspend the diesel tax just like he did with the gas tax.
“We’re trying to do everything we can at the state level to mitigate this, but I think I need the legislature to get that over the finish line,” Lamont said.
The legislature is not in session and it’s unlikely a special session will be called before July 1.
Another key date is June 15, when we’ll know what the diesel tax will be.
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