Gov. Tom Corbett struck a populist note in this week’s budget address, saying lifting the Oil Company Franchise Tax cap would force oil and gas companies to “pay their fair share.” But the increase will likely be passed onto consumers at the pump and may make Pennsylvania gasoline the most heavily taxed in the nation.
As levied now, the tax is about 9 percent of the price of a gallon of gas, but calculated on a maximum price of $1.25 per gallon, yielding about 20.3 cents. By gradually lifting that cap over time to reflect actual gas prices – already more than double the cap – the amount of the tax paid per gallon could more than double.
Gov. Corbett tried to soften the blow by cutting another state tax on fuel, the excise tax, from 12 cents down to 10 cents.
That could be cold comfort for consumers.