Cathy Osten

Senator Osten Welcomes 10% Cut in Diesel Fuel Tax

HARTFORD – State Senator Cathy Osten (D-Sprague), who is Senate Chair of the budget-making Appropriations Committee, today welcomed an announcement by the state Department of Revenue Services (DRS) that it is cutting Connecticut’s diesel fuel tax in the current fiscal year that began July 1 by 10% per gallon, reducing the tax by 4.5 cents a gallon from 44.6 cents to 40.1 cents.

Every year, DRS is required by state law to calculate the new diesel fuel rate using the average wholesale price per gallon of diesel fuel for the previous 12-month period ending on March 31.

Connecticut’s diesel fuel tax is now at its lowest level in 11 years.

“We sold about 250 million gallons of diesel fuel in Connecticut from July 2019 until June of 2020. Last year the diesel fuel tax was 44.6 cents per gallon. If we sell the same amount of diesel fuel in the coming year as we did in 2019-2020, that will equate to an $11 million savings for Connecticut truckers and for Connecticut residents who drive diesel-powered automobiles,” Sen. Osten said. “It’s just the latest piece of good economic news for Connecticut, coming on top of our historically high Rainy Day Fund, our budget surplus, our pension payments, and our great state bond rating. Who knows – maybe this year’s diesel tax cut will even lower the price of groceries in our local supermarkets.”