Calls for Gas Tax Suspension Grow, But Expert Says Savings Would Be Minimal

Illinois drivers face higher fuel costs as the state motor fuel tax increases on July 1. Now there are growing calls to suspend the tax entirely, but a Springfield expert says the savings would be negligible for most people.

Gas prices continue to go up and the Illinois tax on fuel is poised to increase on July 1. Now there are calls for suspension of the tax as a whole.

Dr. Ken Kriz, the distinguished professor of public management and policy at the University of Illinois Springfield, says that stopping the collection of the tax on gas may sound nice. However, it may save less than one would hope.

I want to kind of stress this wouldn't be a huge windfall for anybody except for those people who drive a lot

Currently the motor fuel tax is about 48 cents per gallon. Starting July 1 the tax will increase to almost 50 cents. When factoring in the motor fuel use tax the number will go from 65 cents to about 67 cents.

Dr. Kriz says his research shows the average driver uses about 575 gallons of fuel per year. He estimates that this would be $5.75 a year for the average driver so that is really not going to have an effect.

I did the calculation and if you suspend the entire motor fuel tax for the state it would be about $285 a year

Not collecting the tax could see state and local infrastructure suffer as a result. In 2016 Illinois voters decided all revenues from the motor fuel tax must be used on transportation costs. This includes roads and bridges.

Since July 1 2025 the state has taken in over $2.6 billion. Those dollars are then distributed amongst the state local governments and mass transit districts. Without the tax a usually consistent stream of revenue would drop for all groups.

I am just like anybody else. I do not like paying a lot of taxes. But I can see it is going to roads and bridges

Dr. Kriz says he thinks once a lot of people realize that this is a constitutionally limited tax it can only be spent for basically unpromising infrastructure. He hopes most people would be more accepting of it once they understand the reality.

There have been calls to suspend the federal gas tax as well. The federal tax currently sits at about 18 cents for gasoline and about 24 cents for diesel.

The Illinois motor fuel tax is paid at the pump meaning anyone whether they are a resident or not pays the tax any time they fuel up.

What The Numbers Mean For Drivers

The calculation from Dr. Kriz shows specific figures that drivers can use to understand the real impact of tax suspension proposals.

• Average driver uses about 575 gallons of fuel per year
• Current motor fuel tax is 48 cents per gallon
• New motor fuel tax starting July 1 will be almost 50 cents per gallon
• Motor fuel use tax brings total to 65 cents per gallon
• Suspending the entire motor fuel tax would save about $285 a year

The Infrastructure At Stake

The motor fuel tax revenue supports critical transportation infrastructure across Illinois. Without this revenue stream state and local governments could face significant challenges maintaining roads and bridges.

The state has taken in over $2.6 billion since July 1 2025. Those dollars are distributed amongst the state local governments and mass transit districts.

I can only hope but you know most people would be more accepting of it once they understand the reality

Dr. Kriz acknowledges that most people dislike paying taxes. He believes once drivers understand the constitutional limitations and how the money is actually spent many would be more accepting of the tax.

The motor fuel tax is a constitutionally limited tax. This means it can only be spent for infrastructure projects that maintain roads and bridges. Without this revenue the state would need to find other ways to fund transportation costs.

What Comes Next

The July 1 increase will affect all drivers across Illinois. The decision to suspend or keep the motor fuel tax remains under debate. Dr. Kriz and other experts continue to analyze the impact on drivers and infrastructure funding.

The federal gas tax also faces calls for suspension. This would affect both state and federal funding for transportation projects. The Illinois motor fuel tax is paid at the pump meaning anyone pays it any time they fuel up.