By Phil Corso
State Sen. Tony Avella (D-Bayside) said his patience was running dry as gas prices continued to go up in his home state.
When he last spoke about rising fuel costs throughout New York in April, the average price for a gallon of regular gas was $4.15, according to data provided by the Oil Price Information Service.
And in the year since he proposed a bill that would have the city impose a flat-tax on fuel, little has changed with current numbers hovering around $3.99 a gallon.
“As we all cry out in pain over the rapid increase of gas prices the past few months, the city is quietly sitting back and collecting an unfair and undeserved surge in revenue,” Avella said in a statement. “With gas prices constantly fluctuating, it is important that motorists have protections in place at the pump.”
The state currently taxes drivers a flat rate of 8 cents per gallon for retail gas, regardless of price, while the city tacks on an additional percentage of the sale price per gallon, Avella said. As the price-per-gallon rises, so do the imposed city taxes.
In his proposal, Avella said the city should join the state by shifting from its current percentage-per-gallon tax system to a flat rate to save motorists money.
At $4 a gallon, Avella said, the difference between the percentage and the flat rate would save someone buying 20 gallons of gas a week roughly $80 over the course of one year.
“The city needs to institute a flat gas tax because not only are consumers being gouged by the base price of oil, but they are also being gouged by the city of New York in its percentage rate collection,” Avella said. “The city is receiving undeserved windfall tax revenue at the expense of its commuters.”
Over the past year, gas prices in New York state have fluctuated while remaining consistently above the national average, according to the Oil Price Information Service, which catalogues the price of fuel over time in different states.
Prices recorded a dip in July 2012, when the average cost for a gallon of regular gasoline was about $3.70, the service said. At that same time, the national average sat much lower, just below $3.45.
Meanwhile, the prices for premium fuel and diesel steadily hovered nearly 2 cents higher.
And unless the state acted to change the way New York City taxed its fuel, Avella said he worried there would be few opportunities for relief at the pump.
“Ultimately, the price of gas is determined by factors outside state control, but it is my hope that with this legislation, we can begin curbing some of the costs for residents of New York City,” Avella said.
Reach reporter Phil Corso by e-mail at pcorso@cnglocal.com or by phone at 718-260-4573.
