Taxes force gas station owners to expect losses

Local News

SPRINGFIELD, Ill. (WCIA) — Just in time for the summer travel season, drivers will be paying more at the pump.

A plan to fund infrastructural repairs around the state will have drivers spending extra on gas, but station owners say they are not happy about the increase.

For gas station owners, the motor fuel increase is just the straw to break the camel’s back after multiple bills challenged the industry this session.

Bill Fleischi, with the Petroleum Marketers Association said gas stations and convenience stores first took a hit when the minimum wage increase passed. He says the measure will force businesses to reconfigure employee salaries which is one of their biggest expenses.

Last week, lawmakers passed the $45 billion capital plan which includes a gas tax increase of 19-cents a gallon that will be used to fund road repairs.

The plan also looks to fund transportation and building projects through hikes like the cigarette tax which will increase the cost by a dollar per pack.

Fleischi says the new rates will deter people from visiting gas stations. Store owners are also gearing up to lose cigarette customers between 18 to 20 after Tobacco 21 passed earlier this year.

Tobacco 21, the cigarette tax and gas tax all take effect July 1, giving owners just a short time to adjust to the new fees.

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