Tuesday, April 19, 2011
Let's break it down: MoDOT receives 12.45 cents of the 17 cents per gallon of gas purchased (local governments receive the remaining 4.55 cents per gallon) and MoDOT receives approximately $500 million a year from the state fuel tax. The federal fuel tax rates are 18.4 cents on gasoline and 24.4 cents for diesel. The price Missourians pay at the pump comes from four different costs: 65 percent crude oil, 15 percent refining, 10 percent distribution and marketing, and 10 percent federal and state taxes.
Higher gas prices hurt MoDOT because as prices rise, people buy less, which can decrease our funds. Missouri ranks 42nd for fuel taxes, yet we maintain the 7th largest highway system in America.
MoDOT's Chief Engineer Dave Nichols explains more about pain at the pump and how it affects Missouri in last week's To The Point podcast.