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You are here: Home / News / Bill would end penny-per-gallon surcharge on wholesale gasoline

Bill would end penny-per-gallon surcharge on wholesale gasoline

April 25, 2016 By O. Kay Henderson

Gas-pumpA long-standing surcharge on gasoline may end January 1, 2017.

The penny-per-gallon fee was established in 1989 to finance clean up of underground storage tanks that were leaking gasoline, diesel or oil.

Representative Walt Rogers, a Republican from Cedar Falls, says the clean-up of all those pre-1990 tanks is done, but lawmakers are leaving $42 million in a fund for any tanks that may start leaking again “or they might find what they call an orphaned tank somewhere, like a Dairy Queen somewhere, there was a tank underneath that they didn’t know about, that was pre-1990, so those potentially have to be taken care of.”

The fee was charged to petroleum wholesalers, but Rogers and other legislators hope consumers see a tiny dip at the gas pump.

“You hopefully will save a penny January 1,” he says.

Three separate House committees unanimously approved the bill. It cleared the full, 100-member House late this afternoon on a 94-0 vote. The bill now goes to the Senate for consideration,

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Filed Under: News, Outdoors, Politics / Govt Tagged With: Legislature

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