NC Motor Fuels Tax Remains Unchanged

Date:  June 19, 2009
Contact: Donna Alderman (919) 733-8214

The North Carolina motor fuels tax for gasoline, diesel, and alternative fuels will remain at 29.9 cents per gallon for the period from July 1, 2009 through Dec. 31, 2009, Department of Revenue Secretary Kenneth R. Lay announced today.

The tax rate is computed using a flat rate of 17.5 cents per gallon and a wholesale component. The wholesale component is either 3.5 cents or 7 percent of the average wholesale price of motor fuel during the preceding six-month base period, whichever is greater. The average wholesale price is a weighted average of the wholesale prices of gasoline and No. 2 diesel fuel. The average price for the last base period was $1.4711 per gallon. Senate Bill 200 was passed during the 2009 legislative session. The bill states that the variable wholesale component of the motor fuels tax cannot fall below 12.4 cents a gallon for the next two years.

The new rate should be used beginning with the gasoline, diesel, and alternative fuels reports for July 2009; those reports should be filed with the Department of Revenue in August 2009. The state motor fuels tax is included in the retail price paid by consumers at the pump.

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