Gas Prices Heading Lower, But Gas Tax Set to Rise
By Elizabeth Prata

Residents of the Gray/New Gloucester area are enjoying a little welcome relief. Summer has brought with it some lower gas prices at area pumps which is welcome news to drivers who just recently were spending more than $2.10 for a gallon of gas.

Motorists will see an increase in fuel costs again as the state is set to automatically kick the gas tax higher on July 1.

Vacationers and those looking to save some money are breathing a sigh of relief this week as gas prices continue to fall for the third week in a row after climbing steadily since last fall. The cost for a gallon of regular gas at the Gulf station in Gray was $1.99 on Tuesday. In New Gloucester, regular gas was $1.93 per gallon at Cloutier's self-service bay and $1.92 per gallon next door at Wings where an attendant pumps the gas for you.

In some areas of the state, gas prices have fallen below $1.80 per gallon. The website Mainegasprices.com provides daily updates on gasoline prices across the state. According to the website, the Irving Oil station on Rt 2 in Mercer and the Kenoco Station on Rt 2 in Fairfield were charging $1.79 per gallon of regular gas.

Several stations in York County were on the list of gas stations with the lowest prices. Stations in Saco, E. Waterboro, Lyman, Arundel, Shapleigh, and Sanford made the top fifteen list of lowest prices while several in Cumberland County, including one in Falmouth, were reported to be among those charging the most in the state. The Mobil station on Route 1 in Falmouth had been collecting $2.05 per gallon of regular gas last Saturday and motorists in Portland reported that the Exxon and Mobil stations at the intersection of Riverside St and Exit 48 were collecting $2.06 on Saturday.

The highest fuel costs reported in the state are being paid by Dixmont residents who fill up at the 7 & 9 Corner Store at the intersection of Routes 7 and 9. On Monday, gas there cost $2.14 per gallon of regular unleaded. These prices change daily and may in fact be lower at the time of publication.

Although the cost of gasoline is going down now, there will be an increase again on July 1 as the state again hikes its fuel tax. The legislature has tied the amount it collects in gas taxes to the inflation index. In June of 2003, motorists sent .22 for every dollar they spent on gasoline to Augusta.


This amount increased on July 1st last year to .246 and will increase further on July 1 to .252 in state taxes collected on every dollar spent at the pumps. It is expected that the fuel tax will bring in $8 million to the State of Maine. This practice has two local lawmakers concerned.

"(The gas tax) is regressive," said Rep. Susan Austin of Gray. "Especially to our state when it kicks in at the height of the tourist season. Maine's number one economic driver is Tourism. The Maine Turnpike took note of that fact and has delayed hiking the tolls on the turnpike to family (car) passenger travel."

Rep Lois Snowe-Mello, who represents New Gloucester in the House of Representatives, has met with Governor John Baldacci about her concerns. "I asked the Governor to use his executive authority to lower the cost of gas
for Mainers. Specifically, I requested that the Governor sign an executive order that would freeze the automatic increase on the state gas tax scheduled for implementation on July 1st," Snowe-Mello said. "We are the 2nd highest taxed state in the nation and we should not be raising the gas tax."

As of Monday, she had not heard back from Gov. Baldacci concerning her proposal.

Not all gas tax hikes begin in Augusta. Some in Washington are proposing an increase on federal gas taxes as well. Congressman Don Young (R-AK) proposed an increase of the federal gas tax from 18.4 cents per gallon to 23.85 cents per gallon to pay for spending plans in the proposed federal highway bill.

Austin sees a problem with Maine's gas tax in general beyond how it may halt economic activity. She said in an interview with The Monument, "The intention of this tax was to create a fund for road and bridge repair and dedicated to snowmobile trail and ATV funds. The increase comes to approx. a penny each year for the foreseeable future.

The big concern I have now is seeing the funds taken from the DOT Fund and passed to the General Fund. In this case, the Legislature passed a specific tax for particular reasons and without protection it is used to cover the expense of the general budget.

I don't believe that is a good procedure to follow. It sets a negative precedent with our Maine people much less the representatives and senators who believed this tax would go to very important and necessary maintenance of our infrastructure of roads and bridges. I believe it breaks a trust upon which the decision was made to vote in favor of the special tax," Austin said.