SPRINGFIELD, IL (Chambana Today) – Illinois motorists and businesses are preparing for higher costs at the pump as new fuel tax increases take effect on July 1,  driven by inflation and local tax expansions. Nate Harris, CEO of the Illinois Fuel and Retail Association, voiced concerns this week about the cumulative impact on residents and the broader economy.

“Illinois drivers are already paying their fair share in motor fuel taxes and that amount is set to go up July 1st,” Harris stated. “With the motor fuel tax rates tied to inflation, Illinois businesses and consumers are the main source of funding for building and fixing the State’s transportation infrastructure.”

With three weeks left in the 2025 Spring Legislative Session, the Association is closely monitoring proposals around local and county motor fuel taxes, a low carbon fuel standard, a mileage tax, and regional transportation funding consolidation.

As budget talks intensify, Harris cautioned lawmakers: “It is important for legislators to remember increasing the motor fuel tax not only impacts their constituents directly, through their increased cost at the pump, but also indirectly, through increased costs of goods and services throughout the economy.”

The Illinois Road Fund currently holds $3.61 billion, with an additional $49.5 million deposited on May 12, signaling strong revenue intake.

The Illinois Department of Revenue has released updated fuel tax rates:

  • Municipal Tax: The Village of Bartlett will impose a 3¢/gallon retail tax starting July 1.

  • State Motor Fuel Tax (Effective July 1):

    • Gasoline: 66.9¢/gallon (48.3¢ Part A + 18.6¢ Part B)

    • Diesel: 74.9¢/gallon (55.8¢ + 19.1¢)

    • Propane: 73.0¢/DGE

    • LNG: 71.1¢/DGE

    • CNG: 60.9¢/GGE

These changes come as inflation continues to drive automatic increases, raising affordability concerns across the state.