Motor Fuels Tax Remains Unchanged

Date:  December 16, 2008

RALEIGH – The North Carolina motor fuels tax for gasoline, diesel, and alternative fuels will remain 29.9 cents per gallon for the period from Jan. 1, 2009 through June 30, 2009, Department of Revenue Secretary Reginald S. Hinton 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 $3.2165 cents per gallon. In the 2007 legislative session, the General Assembly passed House Bill 1473, which capped the variable wholesale component of the motor fuel excise tax at 12.4 cents per gallon.

The rate should be used with the gasoline, diesel, and alternative fuels reports for January 2009 that are to be filed with the Department of Revenue in February 2009. The state motor fuels tax is included in the retail price paid by consumers at the pump.

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