McHenry Times

Gas prices throughout Illinois reached record highs in June and remained higher than the national average through July.

One reason for the surge in fuel prices is Illinois’ Environmental Protection Agency standard that the state must burn a cleaner blend of gasoline throughout the summer months, according to the Peoria Journal Star.

Another reason for the price increase is taxes. Illinois raised its gas tax in 2021 and the state has the second highest gas taxes in the United States, according to the American Petroleum Institute.

The national gasoline tax average has fallen to $4.327 per gallon, 37% higher than a year ago, according to a press release from the American Automobile Association (AAA). The drop is the result of decreased demand last month.

“Domestic gasoline demand dipped recently, which took some of the pressure off of pump prices,” Andrew Gross, a AAA spokesman, said in the release. “About 80% of stations are now selling regular for under $5 a gallon. But July is typically the heaviest month for demand as more Americans hit the road, so this trend of easing prices could be short-lived.”

Residents in the ‘Land of Lincoln’ continue to pay more than the national average even amid a 7.5% price drop, above the national average 6.5% slide, according to NBC Chicago.

Illinois pays 78 cents in gas taxes before local taxes are added, just below the 86.55 cents in taxes levied in California, according to the Peoria Journal Star.

With the price of gasoline based on the price of oil, oil prices could be impacted by market worries that economic growth could stall amid rising interest rates or inflation, AAA reported.