How Much is Gas Tax in Ohio?

August 20th, 2022 by

Gasoline prices are at a peak across the U.S., rising notably every month over the first half of the year. Gas taxes are another factor affecting prices, and Ohio recently increased the state tax on gasoline from 28 cents per gallon to 38.5 cents per gallon. Here, we dive into Ohio gas taxes, including how much they are and why gas prices are rising, and wrap up with some tips to save on fuel and drive more affordably.

man filling up a car with gas in ohio

Gas Pump by Mike Mozart is licensed with CC BY 2.0

Gasoline is close to $5.00 a gallon in many parts of the country, a dramatic increase since many states hit the $4.00 price threshold at the beginning of 2022. However, the actual cost of fuel isn’t the only expense to consider — Americans also pay a federal tax of 18.4 cents per gallon. On top of this, Ohio has its own state gasoline tax, which was recently increased. Added up, taxes make up 14.2% of the average cost of gas in the Buckeye State.

The federal gas tax hasn’t changed since 1993’s levy of 18.4 cents per gallon, but states such as Ohio are adjusting tax rates to deal with the troubled economy. Being frugal and planning ahead is wise, especially in the coming months.

Is the Gas Tax Related to Inflation?

Inflation is a natural, normally slow occurrence that refers to the increase in the cost of goods and services. The gas tax is intended to offset the rising costs of different things the state government must pay for, such as repairing and maintaining roads. We likely won’t see the Ohio gas tax 2022 update reduced or repealed until the inflation issue resolves.

With this in mind, we can consider what affects inflation to estimate when Ohio gas taxes might go back down. The main things affecting inflation are production costs, demand, and fiscal policies. Let’s look over some recent examples of changes to such factors associated with increasing or decreasing inflation.

  • Production costs: The more difficult or expensive it becomes for American gasoline companies to acquire, refine, and sell oil, the more prices can rise. Many businesses depend on fuel, delivery, or driving, so higher transportation costs affect the entire economy.
  • Demand: After the lockdowns associated with the COVID-19 pandemic, huge numbers of people are now going back into the office. People need gasoline to fill up their cars more than ever, and high demand means businesses are more likely to charge higher prices.
  • Fiscal Policies: The Federal Reserve’s decision to raise interest rates will either effectively decrease inflation and prevent a recession or not. Economists have differing opinions on how the increase will pan out, but in theory, raising interest rates helps calm the economy and avoid a crash while reducing inflation.

What Are Gas Taxes For?

Gas taxes are mainly used to repair, maintain, and expand roads and highways. In Ohio, the average amount of miles traveled is rather low — about 9,000 to 10,000 on average. Since there hasn’t been a significant increase in drivers or another major change, the Ohio gas tax 2022 increase is frustrating to some citizens and lawmakers.

However, the reason for the change isn’t an increased need for government road and highway services this time. The state government increased the tax to 38.5 cents per gallon to try to counterbalance the rising prices of crude oil. Many of the vehicles needed to repair or expand roads and provide state highway services are highly dependent on gasoline. Further, on top of the rising prices of all other goods transported by gasoline or crude-oil ships and vehicles, the tax increase will help the state make up for the difference.

Why Did Gas Prices Rise in 2022?

Several events that began or progressed in 2022 have impacted the economy and increased the price of gas all over the world. Arguably, the most significant and unpredictable impact has been the ongoing war in Ukraine. The global energy market was forced to make major adjustments when various countries and markets stopped all business with Russian oil sources or banned their oil imports.

While the war is the most significant factor, part of the issue is also a lack of preparation for a supply limit. For example, the U.S. has relatively few refining facilities, so losing international sources of refinement created bottlenecks in production.

How to Save More When Buying Gas in Ohio

With the recent change, Ohio now has the seventh-highest gasoline tax of all U.S. states. At the same time, the average American does not earn enough to keep up with these inflating prices and expenses. If you’re trying to save money in a strained economy, rest assured you aren’t alone. Here are a few tips to save when buying gas and squeeze more value out of every gallon.

  • Enroll in rewards programs that earn you credit toward gas every time you fill up. Also, try to always use a credit card designed for gas and travel, as they award the most points back for gas.
  • Calculate the amount of gas you will need to use before taking long trips.
  • Fill up early in the week. Studies show that gas prices are usually lowest on Monday and highest on Wednesday, Thursday, and Saturday.
  • Opt for an efficient vehicle, such as any of the recent models in Chevy’s lineup. Or, you could forgo purchasing gasoline entirely and purchase a Chevy EV, such as the Bolt.
  • Cut down on unnecessary travel, such as by doing all your grocery shopping in one day rather than making multiple weekly trips.

There’s a lot going on in the world, and however high the price of gasoline goes before settling, you have options to reduce your cost of transportation. A newer, significantly more efficient vehicle might be the most helpful change you can make. Check out our new Chevy inventory or collection of pre-owned models and compare your current Chevy’s trade-in value. Getting your hands on a newer model with more horsepower, infotainment features, and safety features might be more affordable than you think at Sweeney Chevrolet.