HAMMOND, Ind. (AP) – Gasoline hikes in Illinois will probably send more drivers looking for better prices in Indiana, but it's unclear if a higher levy on cigarettes will have the same effect, the Illinois gas tax will double from 19 cents to 38 cents per gallon, compared to the 29 cents per gallon tax in Indiana.
"The Illinois Petroleum Marketers Association (Illinois Petroleum Marketers Association, Illinois Association of Convenience Stores) told The Northwest Indiana Times. ] GasBuddy.com Petroleum Analyst Patrick DeHaan agreed.
"Drivers that shop around will find easy savings by going to Indiana, and that will likely lead to a loss in gallon sales for Illinois," DeHaan said.
Also next month, cigarettes will cost $ 1
Gus Olympidis, the CEO of Family Express convenience stores, said that although Indiana's cigarette taxes are much lower, that cost advantage could be lost during the next legislative session when Indiana lawmakers could again consider raising cigarette taxes
A proposal to raise the tax by $ 2 per pack failed in the Indiana Legislature this year despite support in the polls and backing of the Indiana Chamber of Commerce
Nevertheless, Fleischli predicts that the cigarette and gas tax hikes, combined, will be devastating to businesses in Illinois
"Borders will become wider and our customers will be able to buy motor fuel, cigarettes, and other ancillary items, costing the state tax dollars and companies profits," he said. "Our engine fuel volumes will go down from 2% to 3% a year for about three years then start recovering."